Reasons for MNCs Internationalization and Challenges Faced

GLOBAL BUSINESS
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Table of Contents
INTRODUCTION...........................................................................................................................3
Individual notes 1 :...........................................................................................................................3
Individual notes 2 :...........................................................................................................................4
Critically discuss the reason why MNCs internationalize and the typical challenges they
encounter......................................................................................................................................4
3. INDIVIDUAL REPORT.............................................................................................................7
1. Introduction..............................................................................................................................7
2. Analysis of Domestic Market..................................................................................................7
3. Strategy to internationalize......................................................................................................8
4. Indian environmental analysis.................................................................................................8
5. Mode of entry and challenges which may find in the country and possible solutions............9
6. Leadership qualities that support market entry......................................................................10
7. Conclusion.............................................................................................................................10
Reflective Essay.............................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Global business refer top the process of increase business globally. This is the process of
developing the increase in performance and also creating a wide coverage of knowledge in the
workplace. The report will explain the reason of the MNC chosen by the organizations and the
typical challenges they face.
Individual notes 1 :
The European economic community was an association formed by 6 European countries
members during 1957, including three community that were replaced by European Union in
1993. This community is having policies and governing, traditional fashion in all members state.
The main objective of this community was to foster a common trade policy and reduce the trade
barrier in countries and improving the economic condition with entire European region. The
European government also want to reduce the future war and move towards integration and
corporation with other countries to prevent suffer from wars (Johnson and et.al., 2020). The main
sic countries include France, Belgium, Germany, Italy, Netherlands and Luxembourg. Further
this was replaced with European union during Maastricht Treaty effects.
The European community was introduced during the World War II with aim in unified
European found hard to war with each other in near future. This community were introduced in
order to make fair trade policy in within countries. Peacefully political and attribute differences
are being developed to make profitable trade within countries. There are certain pros and corns
which are being identified during the European Economic Community.
The major Pros of EEC are:
 The European countries allied front against outside aggression which create stability in
European country belongs to agreements called NATO to work together with mutual
understanding. This increase the fair trade practise in countries and make high import and
export of goods and service without any barrier (Kinross and et.al., 2020)
 It also creates Job opportunities and high wages are being provided to worker which is
provided under the European agreements. This cause high employments rate in country,
better wages to workers, skilled labours which help local producers to make the high
quality products and to earn good amount of profits.
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 The agreements create eco-friendly policies environment more effectively where same
polices are being used by members countries. This also brings the development of
industrialization in countries.
The major Corns of EEC are:
 Due to allied between the countries, it increases the operating cost of business, This is
due to presence of domestic and international governments are involved which need high
funding to make secure to all countries (Brackeand et.al., 2020)
 There are many problems which are faced by European economic community in spite of
European Union as they all have there different culture of working which leads to arise
problems between countries.
 The agreements also suffer lack of transparency at some point of time due to certain
problems and situation arises.
Individual notes 2 :
Critically discuss the reason why MNCs internationalize and the typical challenges they
encounter
MNCs : — MNCs refer to the multinational corporation company which operate in the home
country as well as works in other different companies around globe. The central office is located
in one of the country and then the organization operates it business and also coordinate with its
offices and management.
There are severable reasoned for which the company operates in the international market
and also develop there business to create more of the knowledge and profitability through
productivity in the new market. They get huge market to work and can operate in different places
where the product can increase the sell and provide the organization in getting benefit margin.
Working in the international market provide different cause and cons to the organization which
they study and work accordingly. The organization always work in those country which they
think that provide them good results and also increase in development of new goals. MNC
provide huge advantages to the business including the ways they provide the market and also
allow the access of such new customer in the market. The reason the organization want to work
in the MNCs are: -
Access to lower the production cost : -
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