Republic of uzbekistan andijan machine-building institute fundamentals of business management


Disadvantages of multinational companies


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Disadvantages of multinational companies 
Multinational companies can be an important economic force in a foreign country. 
Workers in that country depend on multinational companies for their jobs. Consumers need these 
companies for goods and services. Multinational companies can influence or control the political 
power of a country. 
Ways to enter the global market 
As companies expand to other countries, they discover several methods for themselves 
will be 
done. 
Licensing 
Some companies want to produce products in other countries. Foreign 
companies allow them to use their own procedures. Licensing is the granting of permission to sell 
a certain intangible property (production process, trademark, brand name) using the correct use. 
Gerber company in Japan 


started selling licensed baby food products. Use of television or logos on sports team uniforms, 
jackets, notebooks, luggage and other items will definitely require a license agreement. There is 
also some financial investment in the license, so the potential financial change is usually low. Also, 
the risk of the company will be low. 
The right to vote 
Another way to expand to other states is suffrage. An election is the right way to use a 
particular business process or company name. Joint venture A business partnership is a joint 
operation of two or more companies. Such agreements are very common in manufacturing. 
Business cooperation between Japan and America in the production of cars is a clear example of 
this. For example, we can see the business cooperation between Ford Motor Company and Mazda. 
International trade organizations. International business activities are complicated. As a result, 
organizations are created for several companies to conduct international trade. 
World Trade Organization The World Trade Organization was established in 1995 to promote 
trade around the world. With more than 150 member countries, the World Trade Organization 
organizes trade agreements and free trade agreements. Other goals of the World Trade 
Organization include: 
a) 
Decreasing values that affect free trade. 
b) 
Loss of import contribution 
c) 
Reducing barriers affecting banks, trust companies and other financial institutions 
d) 
Providing economic assistance to poor countries 
International Monetary Fund The International Monetary Fund was established in 1946. The 
International Monetary Fund helps more than 150 countries establish economic relations with each 
other. It supports world trade and exchange rates. World Bank The International Bank for 
Reconstruction and Development is called the World Bank. It was established in 1944 after the 
Second World War, with the aim of providing assistance for recovery. At present, the bank's 
function is to provide economic assistance to low-developing countries. These funds contribute to 
the strengthening of communication systems, information exchange and technology. 
The World Bank has more than 180 member countries, and it mainly consists of two parts: the 
International Development Organization and the International Monetary Union. The International 
Development Organization provides loans for the development of countries. Internet activity Coca-
Cola is one of the most famous names in the world, which is sold in more than 200 countries. By 
visiting the company's website, we gain information and insights into how the company makes its 
products. 

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