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Business

PREPARED FOR:

MR. MOSHIUL ALAM
Professor of Multinational Corporation Management
The peoples University of Bangladesh

PREPARE BY:

SHAKIRA MOJUMDAR
M.B.A. (REGULAR)
ID no: 0811811031
ROLL NO: 031
Batch NO.: 18th (winter)
3rd semester-2009

Date of Submission: 12thJune, 200

Chapter - 01

1.Definition of MNC and TNC with example.
2. How many stage of evaluation? Explain them.
3.Distinguish between DFT vs. licensing.
4.Motives of foreign direct investment.
1)Definitions of MNC and TNC with example.

The multinational corporations (MNCs) are businesses that have operations in more then one county.

On the other hand we can say, the multinational corporations (MNCs) are a company that is headquartered in one country but has operations in one or more other countries.

A Corporation with power to coordinate and control operations in two or more countries without owning them

A multinational corporation (MNC) or transnational corporation (TNC), also called multinational enterprise (MNE), is a corporation or enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation.
Exxon Mobil, the parent of Gesso, Mobil and Exxon Mobil companies around the world, is the biggest MNC. Its economy is similar to that of Chile or Pakistan.

2) How many stage of evaluation? Explain them.

1.Export stage

Initial inquiries firms rely on export agents
Expansion of export sales
Further expansion foreign sales branch or assembly operations (to save transport cost)

2.Foreign Production Stage

There is a limit to foreign sales. Wages and land rents might be lower in the foreign countries.

DFI versus Licensing
Once the firm chooses foreign production as a method of delivering goods to foreign markets, it must decide whether to establish a foreign production subsidiary or license the technology to a foreign firm.

Licensing
Licensing is usually first...