Pros and Cons of Multinational Companies

The advantages of having a multinational company.

These are the reasons for companies to go multinational. 

There are many benefits for a company to expand their businesses to global scales.

Impacts on the host countries. There is more employment so more people will have higher chances of getting a job. There will be improved technology and inward investment. More competition between the domestic companies of the country and a lot more outflow of cash.

The home country would be having the more cash inflow though there would be more unemployment  in the country and increased employment in the company. The home country would be responsible for most money related issues in the company.

Globalisation

Globalisation means the expansion of a business into international economy through business.
Many big companies that want to get the word of their business to other parts of the globe would be thinking of setting up companies in other countries.
Companies we see around the world like:

• Apple
• Microsoft
• Blackball
• Nike
• Adidas
• Nokia

They have made their business globalised for many national economies to access.

PEST Analysis

PEST means

• Political
• Economic
• Social
• Technology

Political

• Environmental issues
• Law
• Regulatory bodies and processes
• Government policies
• Trading policies
• Home market lobbying/pressure groups
• International pressure groups
• Conflicts

Economic:

• Fiscal policy
• Monetary Policy
• Trade policy
• Interest rate
• Unemployment

Social:

• Lifestyle
• Culture
• Trends
• Pressure groups
• Environmental Issues

Technology

• New Products
• New raw materials
• Process
• Sources of Finance