Benefits Of Multinational Corporations Essay

Like whatsoever other multinational corporation, aggrandisement Motors realize been coupled with various economic implications and benefits to the foreign countries in which it operates. Acme is a motor vehicle ships company headquartered in Nuevo L atomic number 18do but performing other planetary caper in Mexico, Spain and other countries. In the foreign countries, it has been involved in the manufacturing of motor vehicle engines above their concourse to complete vehicles. The performance of the company is usually fed by a number of comparative advantages which are implied by its available capacity.Generally, the large scale capacity of the company has been a major advantage which the company uses to create economics of scale in its operational system through its broad endowed portfolio of technology. It has been suitable to successfully compete in the foreign international market which is highly competitive. The company has various chaste and management tools that joc kstrap to impair the effects of foreign business culture which may lead to operational failures.It has a wide management support which compound the tools of research into the broad market and political risks in operation(p) in the foreign market which may bring operational losses. Either it has also used the tools of mergers and acquisitions to help prevent the negative impacts of foreign market infestations. (Skene, 1992) However, the operational portfolio of the company has been faced by the challenges of negative externalities of environmental pollution and degradation in the host countries.Basically, the industrial nature of the company compounds various environmental debasing facets which include resource over exploitation emission to the air pollution, water pollution and the general socio-economic implications which are of negative external capacity. However, the problem of environmental pollution and degradation to the company allies to been a dark problem which has even called for various statutory control programs both by the company and the state government. commonly the tool of increasing taxation has been a subjective implication which has helped the company to change its industrial characteristics. by higher toll levies by much(prenominal) foreign governments, the company has changed its industrial technology to more environmental friendly methods which cause less pollution. Generally, through such taxes, the government has then compensated the society for such environmental pollutions above supplying various public goods which benefit the people. (Wray, 1997) To the company, the tools for control of environmental degradation have posited various apostrophize implications both in the short run and in the long run.Since the system for implementing environmental control has been achieved through change in modifying operation to capture more friendly methods, this has however been costly. high cost has had a negative implication to increases in the cost in the short run. However, increases in cost have been ransomed through the use of proper management tools which ensure a well equilibrise business management conceptions which continue to provide the company competitively advantages in the market.However, the long run cost has been reduced through higher sells achievements from the active product support from the environmental friendly consumers. (Snowdon, Vane, 1997) Generally, as an primary(prenominal) tool, the environmental aspect is an important tool which the company and any other should apply in the international portfolio. The cost of environmental degradation is costly and would perhaps outweigh the benefit cost relationship which provides lawsuit for competitive advantage at the market.Either, it is important in safeguarding the broad interest of the society with which the manufacturing (industrial) activity is ally to. Reference Skene, G, (1992) Cycles of inflation and Deflation Money, Debt at the 1920s. Westport CT Praeger. Snowdon, B & Vane, H, (1997) A Macroeconomic Reader. London Rout ledge. undergrowth D, (2004) Principle of Macroeconomics Toward a Multiparadigmatic approach. Journal Economic issues, Vol. 38. Wray, L (1997) Kenneth Boudings Reconstruction of Macroeconomics. Review of social economy, Vol. 55.