multinational companies
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Multinational Companies
Vasilisa ViktorovaSofia KononovaAnastasia SlabodkinaDiana Abaidullina
Gr.5202
Agenda:o What is multinational corporation?o Types of multinational corporations
o Advantages & disadvantageso Legal, political & cultural issues
o Examples of multinational corporations
o Questionso References
What is multinational corporation?
A multi national corporation (MNC) or enterprise (MNE), is a corporation or an enterprise that manages production or delivers services in more than one country.
A corporation that has its management headquarters in one country, known as the home country, and operates in
several other countries, known as host countries.
Types of multinational corporations
They say that out of the 100 largest economies in the world, 51 are multinational corporations...
Actually this is 37, only 5 of which will be in the top 50.
Advantages & Disadvantages
• Access to Consumers
• Access to Labor• Laws
•Taxes and Other Costs
Tax policy towards multinational companies.
MNCs are subject to multiple tax jurisdictions, they must pay taxes to several countries
Territorial Tax Jurisdiction – the government taxes income that is earned on the national territory ( in Russia, tax rate is 20%)
National Tax Jurisdiction: both domestic and foreign source income of national companies are subject to income tax. ( ex.: USA – tax rate 35%)
International power
Market withdrawal
Lobbying
Cultural issues Each culture has its own beliefs and values.
To be successful in these foreign countries - multinational companies must be able to recognize and adapt to the differences.
Successful Multinational
companies
Q &
A
What is National Tax Jurisdiction?
In Russia, tax rate is 20% or 30%?
Which company has failed while entering a new market and why?
How to identify a multinational corporation?
Name the types of multinational corporations
References: http://www.roche-duffay.ru/articles/taxation.htm http://www.globalissues.org/issue/50/corporations http://www.enterpriseethics.org/Portals/0/PDFs/
good_business_chapter_13.pdf http://www.deloitte.com/view/en_NZ/nz/services/tax-services/
be021397a5e8c310VgnVCM2000003356f70aRCRD.htm Harvard Business School: Globalization Feature - Why Being
Multinational Is No Longer Enough National Bureau of Economic Research: Effects of Multinational
Company Investments U.S. Small Business Administration: Exporting & Importing http://corporate.walmart.com/our-story/our-business/i http://en.academic.ru/dic.nsf/enwiki/138412#Companies http://www.referenceforbusiness.com/management/Mar-No
Thanks for your
attention!
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