Multinational Corporation

A company often become involved in international trade by exchanging goods or services with another country-importing raw materials it may need for production or exporting finished products to a foreign market. Establishing these trade relationships the first step in the development of multinational business. At this stage, however, the corporation’s emphasis is still on the domestic market. As the trade expands,the corporation’s dealings with companies or people outside the “home country” of that corporation increase.

The corporation then begins to view the whole world as a base for production and marketing operations. The next step in the development of multinational business is focusing on the world market. The company may establish a foreign assembly plant, engage in contract manufacturing, or build a foreign a company that is primarily based in one country and has production and marketing activities in foreign countries.

Since war world II,Multinational corporation have grown rapidly. The names and product of many of the multinationals have become well-known in the world marketplace : international Business Machine (IBM), Royal Dutch Shell, Panasonic, Coca Cola, and Volkswagen. Coca Cola for example, now has operations in more 180 countries.

A multinational corporation operates in a complex business environment. Cultural, social, economic, political, and technological systems vary from country to country. In order to operate successfully, a multinational company need a basic understanding and appreciation of the foreign business environment.

Perusahaan Multinasional

Suatu Perusahaan sering mejadi terlibat dalam perdagangan internasional dengan tukar menukar barang dan jasa dengan Negara lain mengimport bahan baku yang mungkin di butuhkan untuk produksi atau mengeksport barang jadi ke pasar luar Negeri. Pendirian hubungan dagang ini merupakan langkah awal dalam pengembangan suatu perdagangan internasional. Namun, pada tingkat ini, penekanan perusahaan masih padapasar dalam Negeri. Seiring dengan berkembangnya perdagangan , hubungan perusahaan dengan perusahaan-perusahaan atau orang-orang di luar perusahaan itu meningkat.

Kemudian perusahaan mulai memandang seluruh Dunia sebagai tempat produksi dan operasi pemasaran. Langkah berikutnya dalam pengembangan perusahaan multinasional ialah pemusatan pada pasr Dunia. Perusahaan dapat mendirikan suatu pabrik perakitan di luar Negeri, mengadakan perjanjian manufacturing, atau mendirikan perusahaan manufacturing di luar Negeri atua anak perusahaan. Oleh sebab itu, perusahaan multinasional ialah perusahaan yang terutama berbasis dalam sebuah Negara dan mempunyai kegiatan produksi dan pemasaran di luar Negeri.

Sejak Perang Dunia II,perusahaan multinasioanl tumbuh dengan cepat. Nama-namadan produk perusahaan mutinasional menjadi terkenal di pasar Dunia. International Business Machine (IBM), Royal Dutch Shell, Panasonic, Coca Cola umpamanya , sekarang beroperasi di lebih dari 180 Negara.

Perusahaan multinasional, beroperasi di lingkungan bisnis yang rumit.

Sistem kebudayaan, social, ekonomi, politik, dan teknologi berbeda-beda antara suatu Negara dengan Negara lain. Untuk beroperasi dengan sukses, suatu perusahaan multinasional perlu mengerti dan menyenangi lingkungan bisnis luar Negeri.

Answer the following question about multinationals. Question with asterisks (*) cannot e answered directly from the text.

1. What is the first step in the development of multinational business?
2. Where is the company’s emphasis when it is simply trading with other countries?
3. What market does a multinational corporation focus on?
4. A company may establish its manufacturing operations in foreign countries. What are three form that these operations ay take?
5. What is multinational corporation?
6. When have multinationals grown rapidly? * why do you think they have experienced this period of rapid growth?
7. *What are some products that are produced by the following multinational corporations : IBM, Coca Cola, Panasonic, Shell, and Volkswagen?
8. *Why does a multinational corporation operate in a more complex business environment than a domestic company?
9. *What are some of social and political factors that can vary from country to country?
10. Why does a multinational corporation need a basic understanding of foreign business environments? *How can multinational gain this understanding?

The answer

1. the first step (it) is establish the trade relationship with another country
2. the companies ‘emphasis (it) is still on the domestic market
3. A multinational corporation (It) focuses on the world market.
4. the three form (they) are : it may establish a foreign manufacturing company or a subsidiary.
5. a multinational corporation (it) is a company that a primary based in one country and has production and marketing activities in foreign countries.
6. Multinationals (they) have grown rapidly since world war II, because during the war many countries knew what resources are scarce or abundant in other countries.
7. IBM : International Business Machine ; Royal Dutch Shell : OIL ; Panasonic : Electronic ; Coca Cola : Soft drink ; Volkswagen : auto mobile
8. Because a multinational corporation focuses on the world market, and each country has its own system; culturally; economically; politically; and technologically. Where as a domestic company only operates in one country which its system is already familiar.
9. Social : in Japan life time Employment is applied, where as in Indonesia contract system employment is used.

Politically : Thailand is monarchism ; Indonesia is Democratic

10. in order to operate successfully. This understand can be gained through market research.