The Pros And Cons Of The Multinational Corporation

864 Words 4 Pages
*The multinational corporation
Multinational Corporation can be defined as a corporation that has its facilities and other assets in at least one country other than its home country. Such companies have offices and or factories in different countries and usually have a centralized head office where they co-ordinate global management. It can also be defined as a multinational corporation which is usually a large corporation which produces or sells goods or services in various countries.
*Culture shock experienced by managers who work abroad
What is culture shock? It is a phenomenon that all types of expatriates experience, no matter if they work abroad for the first time or if they are veterans in the field of expat assignments. Often,
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These issues can create a dilemma and cause them to doubt themselves and the company they are working with.
*Fair trade issue
Like in any system, there are some criticisms and issues with fair trade for example in some countries in Europe producers pay a certain amount to register for certification and also pay yearly fees to keep the certification which takes away their hard earned, much needed money away from the producers to pay for certification. Some importers are treated fairly while others have to pay so much for importing same products which means the level of playing field is unfair to some importers and is fair to some also fair trade pricing does not take into account for the most part the wage and living disparities which may exist in different parts of the world, or even in countries which are in the same geographical region.
*Ethical issues faced by managers in dealing with international business
The two major ethical issue faced by managers in dealing with international business are:
Employee Behaviour: From large corporations to small businesses, individuals involved in all types of business often face ethical issues stemming from employee behaviour. For example, whether an employee can spend work
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the Russian China management style tends to follow Confucian philosophy: Relationships are deemed to be unequal and ethical behaviour demands that these inequalities are respected: Older person should automatically receive respect from the younger, the senior from the subordinate. Management is directive, with the senior manager giving instructions to their direct reports who in turn pass on the instructions down the line.
Subordinates do not question the decisions of superiors – that would be to show disrespect and be the direct cause of loss of face for all concerned while Russian management style tends to be centralized and directive. The boss, is expected to issue direct instructions for subordinates to follow. Little consultation will be expected from people lower down the company hierarchy. Indeed too much consultation from a senior manager could be seen as a sign of weakness and lack of decisiveness. Middle managers have little power over strategy or input in significant strategic decisions. The most powerful middle managers are the ones who have the most immediate entree to the decision-maker at the top of the organization. There is little point in wasting time debating with middle

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