Tugas Bahasa Inggris 2 tulisan

Multinational Corporations

A company often becomes involved in international trade by exchanging goods or services with another country-importhing raw materials it may need for production or exporting finished products to a foreign market. Estabilishing these trade relationships is the first step in the development of a multinational business. At this stage, however, the corporation’s emphasis is still on the domestic market. As trade expands, the corporation’s dealings with companies or people outside the “home country” of that corporation incrase.
The corporation then begins to view the whole world as a base for production and marketing operation. The next step in development of a multinational business is focusing on the world market. The company may establish a foreign assembly plant, engage in contract manufacturing, or build a foreign manufacturing company or subsidiary. Therefore, a multinational corporation is a company that is primarily based in one country and has production and marketing activities in foreign countries.
Since world war II, multinational corporations have grown rapidly. The names and products of many of the multinationals have become well-know in the world marketplace: International Business Machine (IBM), Royal Dutch Shell, Panasonic, Coca Cola, And Volkswagen. Coca-Cola, for example, now has operation in more than 180 country.
A multinational corporation operates in a complex business enviroment. Cultural, social, economic, political, and technological system vary from country and country. In order to operate succesfully a multinational company needs a basic understanding and appreciation of the foreign business enviroment.