Multinational Corporations

Author(s):  
Leena Ajit Kaushal

Foreign Investors are looking forward to enter organized retail sector, which has a mere 8 percent presence in India, but the present government in India which endorses liberal economic framework proscribe 100 percent FDI in multi-brand retail sector on the grounds of safeguarding small indigenous retailers known as ‘kirana stores'. The objective of the chapter is to explore the importance of Multi National Corporations (MNCs) not only in multi-brand retail sector but otherwise as a potent source of technology, efficiency and equality for farmers and poor, poverty alleviation and growth for a developing economy as a whole.

2019 ◽  
pp. 460-479
Author(s):  
Leena Ajit Kaushal

Foreign Investors are looking forward to enter organized retail sector, which has a mere 8 percent presence in India, but the present government in India which endorses liberal economic framework proscribe 100 percent FDI in multi-brand retail sector on the grounds of safeguarding small indigenous retailers known as ‘kirana stores'. The objective of the chapter is to explore the importance of Multi National Corporations (MNCs) not only in multi-brand retail sector but otherwise as a potent source of technology, efficiency and equality for farmers and poor, poverty alleviation and growth for a developing economy as a whole.


2002 ◽  
Vol 21 (2) ◽  
pp. 137-150
Author(s):  
Daniel Yan ◽  
Malcolm Warner

This article argues that sino-foreign joint ventures (SFJVs) and wholly foreign-owned enterprises (WFOEs) have been influenced by a number of ongoing changes, for example, government policy toward foreign investment, indigenous management practices, human resource management practices and the nature of investment. In its overview of the longitudinal changes in these four areas, it suggests that foreign investors do not necessarily make an either WFOE or SFJV decision when considering their desirable mode of operation in China. Meanwhile, it argues that multinational corporations should take a dynamic approach to constantly re-position themselves as SFJVs in their business plans with respect to the mentioned areas, so as to achieve the best result as China enters the WTO. Finally, this analysis sets out a preliminary ‘Dynamic Positioning Model’ of these two modes of operation in China, which serves as a foundation on which further hypotheses can be built.


2016 ◽  
Vol 6 (3) ◽  
pp. 1-39
Author(s):  
Roger Moser ◽  
Gopalakrishnan Narayanamurthy

Subject area The subject area is international business and global operations. Study level/applicability The study includes BSc, MSc and MBA students and management trainees who are interested in learning how an industry can be assessed to make a decision on market entry/expansion. Even senior management teams could be targeted in executive education programs, as this case provides a detailed procedure and methodology that is also used by companies (multinational corporations and small- and medium-sized enterprises) to develop strategies on corporate and functional levels. Case overview A group of five senior executive teams of different Swiss luxury and lifestyle companies wanted to enter the Middle East market. To figure out the optimal market entry and operating strategies, the senior executive team approached the Head of the Swiss Business Hub Middle East of Switzerland Global Enterprise, Thomas Meier, in December 2012. Although being marked with great potential and an over-proportional growth, the Middle Eastern luxury market contained impediments that international firms had to take into consideration. Therefore, Thomas had to analyze the future outlook for this segment of the Middle East retail sector to develop potential strategies for the five different Swiss luxury and lifestyle companies to potentially operate successfully in the Middle East luxury and lifestyle market. Expected learning outcomes The study identifies barriers and operations challenges especially for Swiss and other foreign luxury and lifestyle retailers in the Middle East, understands the future (2017) institutional environment of the luxury and lifestyle retail sector in the Middle East and applies the institutions-resources matrix in the context of a Swiss company to evaluate the uncertainties prevailing in the Middle East luxury and lifestyle retail sector. It helps in turning insights about future developments in an industry (segment) into consequences for the corporate and functional strategies of a company. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or e-mail [email protected] to request teaching notes. Subject code CSS 5: International Business.


2013 ◽  
Vol 23 (3) ◽  
pp. 381-406 ◽  
Author(s):  
Sridevi Shivarajan ◽  
Aravind Srinivasan

ABSTRACT:We extend the Base of the Pyramid (BoP) poverty-alleviation approach by recognizing the poor as valuable suppliers—specifically of intellectual property. Although the poor possess huge reserves of intellectual property, they are unable to participate in global knowledge networks owing to their illiteracy and poverty. This is a crippling form of social exclusion in today’s growing knowledge economy because it adversely affects their capabilities for advancement at several levels. Providing the poor access to global knowledge networks as rightful participants—as suppliers of intellectual property—leads to poverty alleviation as a result of their increased social inclusion, not only through economic benefits, but also through the poor’s improved well-being as a result of their increased self-esteem and dignity. Using concepts from social network theory, we develop a poverty-alleviation approach to harness and integrate the intellectual property of the poor into global knowledge networks through trust-based partnerships among the poor, non-governmental organizations, and multinational corporations.


2008 ◽  
pp. 36-50 ◽  
Author(s):  
I. Rozinskiy

Sizeable sector of foreign-owned entities has emerged in Russia, comprising branches, daughter companies and majority-owned companies of foreign investors. The focus of regulator’s and researcher’s attention should be moved from the extent to which FDI are to be admitted / attracted to Russia to the analysis of whether the format of the already existing foreign-owned entities is the desired one. Globalization leads to differentiation of branches and daughter companies of multinational corporations. People, plants, business lines and even corporate head offices have become transferable from one country to another. This process is greatly intensifying the international competition for the share in the value chain attributable to individual countries. Russia, being the huge market, is in a position to demand a substantial degree of localization from international companies seeking to enter the country. The regulator’s approach towards those potential entrants should be dependent upon their readiness to allocate to Russia a considerable part of the company’s value chain. It is proposed to use corporate governance mechanisms as an instrument to promote national economic interests.


2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Hamid Beladi ◽  
Reza Oladi

AbstractWe consider a developing economy where multinational corporations compete with foreign and local firms in a monopolistically competitive market. The focus of our paper is on consequences of a policy mix of tariffs and foreign direct investment (FDI) tax in a developing economy. We assume all firms are technologically heterogeneous and that foreign firms are technologically superior to local firms. Central to our model is the assumption that FDI activities by multinational corporations would lead to diffusion of technology in the developing economy. We show the existence of a non-trivial equilibrium where most technologically advanced foreign firms emerge as multinationals, engage in FDI activities and this in turn leads to the diffusion of technology. We also show that trade liberalization without liberalization of foreign investment may lead to the protection of most technological backward local firms in the developing economy and such liberalization can reduce the welfare of a representative consumer.


2000 ◽  
Vol 75 (4) ◽  
pp. 469-484 ◽  
Author(s):  
K. Hung Chan ◽  
Phyllis Lai Lan Mo

Many developing economies use tax holidays to attract foreign investment by providing a limited period of tax exemptions and reductions for qualified investors. This paper investigates the effect of tax holidays on foreign investors' tax noncompliance behavior in China's developing economy. We measure noncompliance in terms of tax audit adjustments the Chinese tax authorities require in response to avoidance and evasion. The results indicate that a company's tax-holiday position affects noncompliance. Companies are least compliant before entering a tax holiday, and most compliant while in a tax-exemption period. In addition, domestic market-oriented companies, service-oriented companies, and joint ventures are less compliant than export-oriented companies, manufacturing-oriented companies, and wholly foreign-owned enterprises, respectively. Our evidence is relevant to policymakers designing tax incentives to attract foreign investors. Our evidence on noncompliance should also help tax authorities and field auditors plan more effective and efficient tax audits. In addition, the results should provide researchers an interesting perspective to study the effect of tax-rate incentives on corporate tax noncompliance.


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