Why do national firms become m

a website makes them Global and open to a foreign market but this is somewhat wrong because it does not fulfil the criteria of FDI in a country.
             National firms become multinational for a number of key reasons, to take advantage of overseas resources and factors of production, to be closer to there market, to avoid legislation, to gain tax advantages, to weaken domestic unions, to increase global sales and to gain monopoly power over there competitors. Although multinationals can be defined into three categories, natural resources e.g. Petroleum and Mining, manufacturing e.g. Chemicals and consumer goods and lastly the service industry for example shipping and banking. We will look at the term multinational in its broadest sense because each fragment has its own individual reasons but all of them carry common themes
             Many national companies will become in a sense multinational to make use of resources abroad, for example before world war two most foreign operations established themselves abroad to secure sources of raw material, developing countries were usually the recipient of world-wide FDI, mining companies like St John d'el Rey set up operations in Brazil so that they could mine gold not only in the US but also in Latin America. You can argue that even today this idea of getting closer to your raw materials has not changed because it reduces overhead costs although it is le
             ...

More Essays:

APA     MLA     Chicago
Why do national firms become m. (2000, January 01). In MegaEssays.com. Retrieved 09:24, September 16, 2026, from https://www.megaessays.com/viewpaper/30065.html