IB0012 – Management of Multinational Corporations

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ASSIGNMENT

DRIVE	SPRING 2015
PROGRAM	MBADS (SEM 3/SEM 5) MBAFLEX/ MBA (SEM 3) PGDIB (SEM 1)
SUBJECT CODE & NAME	IB0012 – Management of Multinational Corporations
CREDIT	4
BK ID	B 1906
MAX.MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Q.1 What are the benefits of MNCs to home and host countries?

Answer: Multinational Corporations no doubt, carryout business with the ultimate object of profit making like any other domestic company. According to ILO report "for some, the multinational companies are an invaluable dynamic force and instrument for wider distribution of capital, technology and employment; for others they are monsters which our present institutions, national or international, cannot adequately control, a law to themselves with no reasonable concept, the public interest or social policy can accept. MNC's directly and indirectly help both the home country and the host country.

Q.2 What do you understand by global sourcing? What are the different forms of global sourcing? Elucidate.

Answer: A procurement strategy in which a business seeks to find the most cost efficient location for manufacturing a product, even if the location is in a foreign country. For example, if a toy manufacturer finds that manufacturing and delivery costs are lower in a foreign country due to lower wages of foreign employees, the company might close the domestic factory and use a foreign manufacturer. The internet has been a good way of Global Sourcing where companies are making their products at a cheaper rate so that consumers have a better idea of what they are

Q.3 What is the need and importance of global strategy for MNCs?

Answer: ‘Global Strategy’ is a shortened term that covers three areas: global, multinational and international strategies. Essentially, these three areas refer to those strategies designed to enable an organisation to achieve its objective of international expansion.

Need of good organization structure:

Organization structures are related to setting up of internal authority relationships, responsibility for work performance, communication and control methods.

Q.4 How is the performance of employees assessed and appraised in multinational corporations? Explain in brief.

Answer: The concept of multi-nationality has a number of dimensions. For some the criterion may be ownership of the organization whereas for others it may be nationalities of the senior management. Some may decide on the basis of multi-country organization structure and operations.

International performance appraisal (IPA) is a strategic HRM process that enables the multinational corporation (MNC) to evaluate and improve continuously individual, subsidiary unit, and corporate performance against clearly defined, preset objectives. Effective IPA creates an incentive system that can ensure international employees and overseas

Q.5 What are the main reasons pertaining to the inadequate attention towards issues relating to labour relations in MNCs?

Answer: labor today has managed to generate only a confused, partial and lopsided response to the multinational corporation. To understand why this is so, it is necessary first to analyze the total impact of the multinational corporation (MNC) not merely on organized labor but on the total social structure and work force patterns of the affected nations. From such an analysis one can begin to grasp how truly drastic and dramatic the effect of the MNCs has

Q. 6 Write short notes on:

a. Indian MNCs

Answer: Any company is referred to as a multinational company or corporation (M. N. C.) when that company manages its operation or production or service delivery from more than a single country.

 Such a company is even known as international company or corporation. As defined by I. L. O. or the International Labor Organization,

b. FDI and MNC

Answer: Foreign direct investment (FDI) and multinational corporations (MNCs) play a large and growing role in shaping our world, both economically and politically. Public and academic opinion has long been mired in an inconclusive debate as to whether these phenomena are beneficial things that should be encouraged or harmful things that need intensive governmental regulation. The integrating thesis of this book is that the question as to whether they

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