Global Business: Analysis of MNCs Internationalization and Challenges

Global Business

TABLE OF CONTENT
Individual Notes 1............................................................................................................................3
Conducting Online Research on EEC..........................................................................................3
Individual Notes 2............................................................................................................................4
Critically Discussing Reasons of MNCs Internationalization and Challenges............................4
Individual Report.............................................................................................................................8
Introduction..................................................................................................................................8
Analysis of domestic market........................................................................................................8
Strategy to internationalize..........................................................................................................9
Mode of entry, challenges and their solutions.............................................................................9
Leadership qualities supports market entry...............................................................................11
Conclusion.................................................................................................................................11
Individual Reflective Essay.......................................................................................................12
REFERENCES..............................................................................................................................14

Individual Notes 1
Conducting Online Research on EEC
The European Economic Community was established in 1957, to design an integrated
economy for European nations (Williams, 2018). Initially its aim was to integrate economy
through common market and customs union. The countries who are members of this union has
reduced trade barriers mostly through multilateral negotiations like, General Agreement on
Tariffs and Trade also known as GATT. There are almost few from two dozen countries in EEC
which is now incorporated to The European Union (EU) including countries like, France, Italy
Portugal and many more. United Kingdom was one of the important member of EEC which
ended their membership with Brexit after almost five decades. There were six states that has
founded the EEC that were known as Inner six. These six states are France, West Germany, Italy
and other three Benelux countries which are Belgium, Netherlands and Luxembourg. There are
some advantages and disadvantages of the EEC are as follows:
Pros of European Economic Community
1. The European Economic Community creates an allied against outside aggression:
From the past 50 years the country has the most peaceful years (Goniewicz and
et.al., 2020). This creates stability because all the nations are belonged to the
agreement and work for together for mutual benefits.
2. Have more jobs and wages across Europe: With happening of the Brexit, this
community creates the more employment opportunities, high wages and skilled
labour available in the country.
3. Union takes eco-friendly policies seriously: This community helps the nation to
be more focused on the environment. This benefit makes the tourist love to see
the Europe.
Cons Of European Economic Community
1. It makes easier to cross the border in Europe today's because of this union. There
are only fewer transaction in order to cross the borders.
2. After the establishing of this union still there are many problems with the division
in the country despite the European Union. Malta is the best example of this
disadvantage because it receives six representative in the European Union
parliament.

3. This union may suffer the lack of transparency at some times.
4. The taxation structure of the Europe does not encourage the development of the
new businesses in the market.
5. The union used to favours the large countries with the expenses of the smaller
countries.
Individual Notes 2
Critically Discussing Reasons of MNCs Internationalization and Challenges
Multinational Corporation (MNC) are businesses which operates in two or more
countries. These firms have headquarters usually located in home country from where everything
overlooked upon. MNCs does not simply export goods that are to be sold, they dwell into the
market of those countries and set up their offices in those locations. Mostly the larger
organizations operates as MNCs since it needs heavy financial capital and to notch work force
which can make strategies that make them retain in those marketplaces (Mihov, and Naranjo,
2019). There are many factors that differentiate the local market from international market,
which does limit to the size of the market but relates with different economies, culture and
ethnicity that affect the operations of the firm. There are many reasons of why the firms decides
to internationalize as MNCs taking risks of operations in various economy. Some reasons are
given and discussed below:
 Seek Opportunities for Growth: As the company wants to expand their business and
seek growth, their best shot would be in other markets than in the market they are already
operating. They offer those products or service in other markets that are not available in
home country or provide those products and services which has already reached maturity
level in local market. This will rise their opportunity to increase demand in sector they
are already experienced in, and gain the advantages it comes with (Berry, 2020). There
are many companies which use this strategy to seek opportunity of growth.
 New Customer Base: In new market the company would be creating demand for their
goods or service in the nation full of potential customers. The demand will allow the
company to supply their commodity and gain all the sales advantages. They would reach
to create a customer base that is new and loyal to the firm, which will later help and
support them to expand more. A new customer base will increase the value provided by