Pros And Cons Of Multinational Corporations

Multinational Corporation may be defined as enterprise that operate and has its assets and other facilities in more than one country than their home countries. However in most cases, such companies have offices or industries in different nations and normally have a centralized main office where all the global management is coordinated. The major distinguishing factor of the large multinationals corporations is that their budgets exceed those of many small countries. The major multinational corporations are mainly from Japan, America, or Western European, such as Nike, Honda, AOL, Toshiba, Coca-Cola, and BMW.
Multinational corporations can be categorized into four groups based on their operations; first there is multinational, decentralized …show more content…
For example, a Kenyan, employed by an American company, working in Belgium. The third- country nationals have the advantage that if they are geographical location as the host country and also happen to understand the company’s culture, they can make better economic gains than other types of organization members. This category of employees provides transnational or global image of the corporation. They also tend to require less compensation than host-country nationals. In conclusion, as already discussed above there are three main staffing strategies a multinational corporation can implement when venturing in an overseas market, with each having its pros and cons. It is imperative to note that one of the critical roles of the human resource management in an organization is employees and labor regulations. Labor laws employment policies help in ensuing employee-employer relationship. Whichever strategy is adopted; efficient communication with the corporation 's head office and strategic alignment with overseas operations and policies need to occur for a successful venture.