Evaluate the influences of Multinationals through Globalisation

... EVALUATE THE INFLUENCES OF MULTINATIONALS THROUGH GLOBALISATION A multinational is a firm which has its headquarters in one country but with bases, manufacturing or assembly plants in others. A company would have a number of objectives which would drive them to expansion including: o Increased sales and revenue o A chance to sell in markets where incomes are growing most strongly o Shareholder pressure to maintain profit growth o The opportunity to diversify into a range of markets so that heavy dependence on one or a few markets, which could decline, can be avoided. This reduces risk. The process of globalisation has three distinguishable phases for the individual business: o Companies with a national focus look to expand their markets by selling abroad. o They develop bases in overseas markets from which they can service their sales activities. o They go on to develop sources of inputs based on the cost advantages of a wide variety of locations. Global companies

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