In the activities and business strategy formulation, international companies usually consider a variety of external factors, not only economic but also social, political, culture and rule of law. The concept of national interests and views of community life every country is different, so the multinational companies cannot freely control all activities in the host State. Differences in national interests do not rule out the possibility of conflict an international company with its business partners, communities, consumers, host local workforce. National sovereignty, national life of a country is clearly different from the life of other countries in the world. National life which includes the economic, social, cultural, political and legal uniquely
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Such criticisms, will obtain the truth if multinationals do not adjust to the livelihood of the host country and even more so if preferring to impose or seek to control social system, cultural, political and economic country of origin to the host nation. However, this does not mean that foreign companies had to leave his home country values life and its strategic objectives. At a certain level, the interaction with the state of operation of multinational companies often make a positive contribution to the process of cultural exchange, transfer of technology and management skills that are beneficial to the host …show more content…
Multinational companies usually do political risk analysis of the country into its area of operations is not surprising for a company to not invest in countries experiencing war or political instability in the country is based on the attitude of the concerns will change the political situation that could be detrimental to the operation of multinational companies.
For example, a study for the United Nations shows the transnational corporations that were released in 1705 by force (divestment) in 79 developing countries during the 20 years from 1960 1979. The problem of multinational companies is often a topic of political debate, because his presence affects domestic politics a country. The spread of multinational corporations operating in developing countries feared would reduce the weight of national sovereignty, and not infrequently is suspected as a form of extension of capitalism which is contrary to the principle / their national ideology.
Investment presence of western countries and Japan had become a political issue in the country of Indonesia. In the eyes of Indonesia aspect of foreign capital is considered a negative influence on the policies now in effect. Because they believe foreign investment has significantly increased the dependence of Indonesia to the western countries and
Such criticisms, will obtain the truth if multinationals do not adjust to the livelihood of the host country and even more so if preferring to impose or seek to control social system, cultural, political and economic country of origin to the host nation. However, this does not mean that foreign companies had to leave his home country values life and its strategic objectives. At a certain level, the interaction with the state of operation of multinational companies often make a positive contribution to the process of cultural exchange, transfer of technology and management skills that are beneficial to the host …show more content…
Multinational companies usually do political risk analysis of the country into its area of operations is not surprising for a company to not invest in countries experiencing war or political instability in the country is based on the attitude of the concerns will change the political situation that could be detrimental to the operation of multinational companies.
For example, a study for the United Nations shows the transnational corporations that were released in 1705 by force (divestment) in 79 developing countries during the 20 years from 1960 1979. The problem of multinational companies is often a topic of political debate, because his presence affects domestic politics a country. The spread of multinational corporations operating in developing countries feared would reduce the weight of national sovereignty, and not infrequently is suspected as a form of extension of capitalism which is contrary to the principle / their national ideology.
Investment presence of western countries and Japan had become a political issue in the country of Indonesia. In the eyes of Indonesia aspect of foreign capital is considered a negative influence on the policies now in effect. Because they believe foreign investment has significantly increased the dependence of Indonesia to the western countries and