a)         Outline the reasons why companies chose to stupefy multi home(a) in scope. flesh break your answers with examples. There is an increasing drive for global profits. The transnationalization of a firms trading operations whitethorn be motivated by either upbringing the revenue enhancement of selling its products or reducing exist of producing its goods or services. The a just now is a all logical extension of the firms normal mode of intricacy: from local, to regional, to national and then(prenominal) to global scales of operation. Two key features of todays world argon: first, opposition is increasingly global in its extent and, second, such controversy is extremely volatile. This creates an environment of hypercompetition - an environment in which advantages are cursorily created and eroded. Firms are no longer competing largely with national rivals moreover with firms from across the world. Motivations for going multinational 3 broad cate gories why companies become multinational in scope:         asset-oriented production o         commodities (e.g.
oil reserves, gold, cocoa, coffee beans, tobacco) o         fag out (variations in knowledge and skills, in wage costs, in undertaking productivity)         region Labour Cost / Total Cost: habiliment and footwear - 33%, automotive - 10-15%, chemicals - 8%, TV - 5%         Labour productivity as percentage of US 2001 (GDP per hour worked):         Brazil - 25%         P oland - 33%         UK - 85% !         Norway - 117%         market-oriented production o         market coat of it (consumers willingness to buy products/services and their ability to buy (disposable income)) o         expression of consider (e.g. greater demand for cigarettes in LEDCs)         strategic advantages o         access and trustingness knowledge o         exploit geographic differences in production factors (e.g. raw materials, labour, finance, state of matter policies (taxation, subsidies, backup barriers)) o         shift production and resources between territories on a global scale o         to minimise risk (e.g. Nestlé: lento in MEDCs but offset in other regions) b)         add together Dunnings eclectic paradigm. How useful... If you want to tick a full essay, order it on our website: OrderCustomPaper.com
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