MGMT2101 Lecture Notes - Lecture 2: Multinational Corporation, International Trade, Coldplay
Document Summary
Mgmt2101 lecture 2 - the multinational enterprise: the multinational company appeared sometime in the 19th century, under industrial capitalism. Later, international trade increasingly carried on by companies through their own offices in foreign lands. Industrial enterprises expanded in foreign countries first by integrating forward and, then by moving backward. Emi music: 1887 emilie berliner - self-educated, german born american developed the microphone for alexander graham bell"s telephone. Established in 1897 brought together the new sound recording machines and musicians. Hierarchy: mnc is a parent company that, engages in foreign production and/or marketing, exercises direct control over the policies of its affiliates. Implements business strategies in production: a parent company, located in the mnc"s country of origin, exercises an authoritative, controlling influence over a subsidiary in another country. Oli model: explains why mncs exist, ownership specific. Internalisation specific: location - specific advantages, o&!
