Multinational corporations and Financial markets
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Transcript of Multinational corporations and Financial markets
Multinational corporations and Financial markets
Vasily Makarevich Learning goals I will be able to describe
multi-national corporations and evaluate theircharacteristics. I
will be able to identify strategies of growth for the
private-sectormultinational corporations. I will be able to
describe financial markets and their impact on theeconomy. I will
be able to describe the impact of MNCs on the Canadian andglobal
economy. multi-national corporations
Multinational corporation is a business with any kind of subsidiary
in one or more foreign countries. They are also known as a
transnational or international corporations. Almost all of the
largest multinational firms are American, Japanese, or West
European. Proponents of such enterprises claim that they create
employment and wealth, and improve technology in countries that
favour such development. Critics, however, point out their
political influence, exploitation of developing nations, and loss
of jobs that results in the corporations' host countries. Such
corporations have worldwide influence. First video
https://www.youtube.com/watch?v=FCojpFwWuG0 What multinational
corporations do you know?
#1 ________________________ #2 ________________________ #3
________________________ #4 ________________________ #5
________________________ What multinational corporations do you
know? growth of multinational corporations
In general, MNCs tend to split into two very distinct groups: small
MNCs thatoperate in less than three countries, and very large that
operate in more than 80 countries. Large corporations represent
less than 25% of overall quantity. However, they account forthe
most significant economic activity undertaken by MNCs. Developing
markets are great new opportunities for expansion. New consumers,
cheaplabour, much less regulations create a great environment for
the fast growth. Two ways of expanding: Expand to the countries
with the similar cultural-geographic conditions. If the quality of
theirproduct is competitive, they usually succeed, because of the
similar business conditions. When they are grow to a larger scale
they do not have a choice, but to expand into moredistinct and
riskier markets. In order to protect their investments they usually
seek forgovernment guarantees. Discussion Question Is is fair to
the citizens that MNCs negotiate with the Governments thattend to
not always consider the necessitates of local population? Financial
Market Global financial market along with the MNCs and
advancinginternational trade is a significant force that helps the
economy tointegrate throughout the world. Its a network of 100 of
the worlds banks and brokerages linked bycomputer programs. This
network provides traders with theopportunity to buy or sell foreign
currencies, governmental andcorporate bonds and, finally, stocks.
Traders usually make money by charging their clients for the
service. Bloomberg is the most famous one. ! Knowledge Check What
technical tools do traders use to earn money?
What helps them to make right guesses? In what ways do traders earn
money? the impact of MNCs on the Canadian economy
Positive effects: Heavily invest in research and development
Attract foreign direct investment Make consumer goods better
Negative effects: Hurt small businesses Loss of local jobs due to
outsourcing. Increased political influence though lobbying groups.
Discussion question You are a part of the initiave group in the
province of Newfoundland.You have an offer from one of the MNC that
guaranties the creation of25,000 jobs in return to the 19 years tax
holidays. Would you accept thisoffer? Or you will decline it? Give
various thoughtful arguments. the impact of MNCs on the global
economy
Multinational corporations hold the most important trade
transactionsin the modern economy. They have become an important
pole ofpower for economic world. They revenues are huge (up $200
billions annually), they have anenormous lobby on the Governments
and they influence the life ofordinary people. MNCs do not give an
opportunity to compete for any new marketparticipant. 80% from the
international trade are unfurled betweenUSA., EU and Japan
companies. Learning goals I am able to describe multi-national
corporations and evaluate their characteristics. I am able to
identify strategies of growth for the private- sector multinational
corporations. I am able to describe financial markets and their
impact on the economy. I am able to describe the impact of MNCs on
the Canadian and global economy. Handout Works Cited