Question

What is the latest trend on the development of multinational corporation? ( at least 1500 word, charts and data are required, and case study is preferred)

Answer 1

Multinational corporations can be understood as the big and wealthy companies who operate beyond the national boundaries. They have control over the production of the goods and the delivery of services in the host country. A multinational corporation can be also a company that operates in only one country other than the home country. There are some of the multinational companies that have more turnovers in comparison to the GDP of some countries. Like Walmart, it is one of the countries which have a very high turnover. The multinational companies operate in international trade and they generate revenue form the host countries. Many multinational companies like Philips, Kellogg’s, and Pampers, etc. earn huge revenue outside the USA which is their home country. These companies highly depend upon the other countries for revenue generation. This is the reason why companies are focusing on developing and expanding their business overseas. In comparison to the USA which has a challenging and tough economic environment, Multinational companies target those countries which can give them more revenue. In recent times, many countries are focusing on establishing their business in a country like India where the workforce is abundant and the laws are also liberal. This is the main reason for t expansion of business in these countries.

According to a report, around $1.5 trillion was earned as a profit by the Fortune 500 companies in the year 2016. The multinational companies get to benefit from the difference in the rate of exchange. When a dollar is on the weaker side then the countries who have the slow-growing economies but are developed like Japan get benefitted as they have to pay less for the products and services and in return, they will huge profit when they exchange dollars into their currency. A company like IBM is a multinational corporation that earns huge profits in countries like Brazil, India, and Russia.

The companies are also focusing on the usage of big data which has become the need of the hour. The USA is one of the countries which focusses on collection of the big data through various conferences and articles. This big data helps in targeting the customers with some advanced techniques like introducing new and interactive channels and this will also help in increasing the direct sales volume. This also helps in making a unique sales pitch which will help the companies to improve their returns. So, this one is also the new trend in the multinational corporations which is running today at a high pace.

In present times, the companies are working towards making a balance between the host and the home countries revenue. This will help them to earn more and more profits as they will manage to capture the customers of both countries. This fusion will help them to set a bright future for the companies and the employees who work there. Moreover, the multinational companies are working towards utilizing the geographical changes in the countries. This helps them to generate more employment and also increased returns. The old practices are being overtaken by the new trends in the market and the companies have become more and more competitive. So, this is the current trend in the development of multinational corporations.