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    Factors That Affect A Multinational Corporation - Chron

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    Kamran Raiysat
    Political, economic, and technological factors all influence the operations and strategic decisions of multinational corporations. Political factors concern government policies, laws, and stability. Economic factors include rates of economic growth and disparities between countries. Technological factors relate to infrastructure, technical capacities, and levels of development that determine how easy it is to do business.

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    Factors That Affect A Multinational Corporation - Chron

    Uploaded by

    Kamran Raiysat
    1K views1 page
    Political, economic, and technological factors all influence the operations and strategic decisions of multinational corporations. Political factors concern government policies, laws, and stability. Economic factors include rates of economic growth and disparities between countries. Technological factors relate to infrastructure, technical capacities, and levels of development that determine how easy it is to do business.

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    Factors That Affect a Multinational Corporation _ Chron

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    Political, economic, and technological factors all influence the operations and strategic decisions of multinational corporations. Political factors concern government policies, laws, and stability. Economic factors include rates of economic growth and disparities between countries. Technological factors relate to infrastructure, technical capacities, and levels of development that determine how easy it is to do business.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views1 page

    Factors That Affect A Multinational Corporation - Chron

    Uploaded by

    Kamran Raiysat
    Political, economic, and technological factors all influence the operations and strategic decisions of multinational corporations. Political factors concern government policies, laws, and stability. Economic factors include rates of economic growth and disparities between countries. Technological factors relate to infrastructure, technical capacities, and levels of development that determine how easy it is to do business.

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    of 1

    Factors That Aect a Multinational Corporation

    by Paul Cole-Ingait
    When thinking about the international business environment, concerns over
    economic, political, cultural, technological and regulatory conditions of your
    target markets will always crop up. The dynamics of the international business
    environment are driven by complex combinations of these factors. As such, it is
    always important to consider the implications of country-specific investment
    climate when making operational and strategic decisions for a multinational
    corporation.
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    quotas and technical standards. For example, the European Union has regulations
    How Do Multinational Companies Affect that guarantee preferential trade treatment for member countries. Political
    Local Businesses? stability is also an important aspect of the international business environment.
    Frequent political unrest and military coups could force a multinational
    cooperation to suspend or close operations.
    What Are Some Ways in Which Global Forces Economic Factors
    Affect Business Today?
    Rates of economic growth influence the levels of demand for your goods or
    services in international markets. However, economic growth rates may be high in
    some countries and low in others. For example, the 2010-2012 Eurozone debt
    Qualitative Factors in Capital Investment crisis slowed down economic growth in many European countries at a time when
    Decisions countries in other regions were experiencing an economic boom. Consider such
    disparities of economic growth in the operational and planning activities of a
    multinational corporation.

    Technological Factors
    The availability of technological infrastructure and technical capacities determine the prosperity of a multinational corporation in
    host countries. Factors such as broadband connectivity and technical training have become essential ingredients of successful
    operations in the modern business world. Moreover, the levels of technological developments in a given country determine the
    scope of technical understanding among its population. While it may be easier to establish and maintain technical operations in
    high-technology countries, the same cannot be said of low-technology countries.

    Social Factors
    Demographic factors such as religion and culture affect the types, quality, functional features and demand levels of your products
    in international markets. Cultures attach different meanings to time, objects, names, color and attitudes. For example, General
    Motors suffered low sales when it introduced the Nova car in Latin American markets because the car name translated to it does
    not move in Spanish. Therefore, a multinational corporation must have the ability to interpret and understand varying cultural
    cues and patterns that are characteristic of the international business environment.
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