Theoretical background[ edit ] The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services. They have taken the integration of national economies beyond trade and money to the internationalization of production.
Most studies are based on investment flows between developed countries, however.
|Multinational companies and preference for expatriate CEOs||Msimanga adamant Mosola must be suspended The recent announcement of Mr Jordi Borrut Bel as the successor of Nigerian Breweries Plc interim Managing Director, Johan Doyer, brought to the fore the preference of expatriates by multinational for the chief executive position. In the s, s and s, there was a deliberate policy by multinationals to identify outstanding Nigerians who could be groomed as successors to the expatriates who were running the companies at the time.|
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|The role of multinational corporations in South Africa||Multinational companies cheat Africa out of billions of dollars Published: This is equivalent to six times the amount needed to plug the healthcare funding gap in Ebola affected countries of Sierra Leone, Liberia, Guinea and Guinea Bissau.|
With a firm-level dataset on South Korean multinational corporations, this dissertation adds new insights to the research of multinational corporations from the perspective of an emerging country.
The first essay investigates the impact of the level of development of the destination country on employment growth of the multinational corporations in the home country. Using a difference-in-difference approach, we assess the impact of starting to invest in less-advanced countries compared with investing in more-advanced countries.
To obtain suitable control groups in each case, we use the propensity score method. The method selects national firms that ex post did not take the investment decisions even though ex ante they would have been equally likely to.
We find that moving to less-advanced countries decreases a company's employment growth rate especially in the short run.
On the other hand, moving to more-advanced countries does not consistently affect employment growth in any significant way. Including investment decisions of established multinationals in the estimation somewhat weakens but does not overturn this conclusion. The second essay studies the location decision of South Korean multinationals across China's regions with a firm-level dataset.
Our conditional logit estimates confirm previous studies that found agglomeration effects along industry and along national lines. In particular, South Korean investors target the region where there are more firms in an industry irrespective of their nationality.
At the same time, more affliates from South Korean multinationals also attract new entrants. More importantly, however, we add an upstream and downstream backward and forward linkage effect.
We find that the presence of upstream and downstream South Korean affiliates significantly increases the likelihood that a South Korean multinational invests in a particular region.
At the same time, however, backward and forward linkages at the industry level that do not differentiate by nationality do not seem to matter much. As such, our analysis of investors' location choice brings together two perspectives: The third essay explores regional production networks and off-shoring of material and service inputs in East Asia using the Asian International Input-Output Table, and In process of doing so, off-shoring is directly measured from the Table which is not used in the previous literature on this issue.
It turns out that East Asian countries source the significant share of inputs within East Asia. Besides material off-shoring, services off-shoring becomes more and more common in the era of globalization. In particular, countries in this region have used goods and services inputs mainly from Japan and the United States.
However, in recent years, China and Korea started to supply greater amounts of goods and services inputs.Reviews the debates about divestment from and sanctions against South Africa from the s. Includes case studies of companies that divested--Eastman Kodak and IBM--and stayed- .
multinational companies In recent years, there has been an Increasing number of multinational companies (MNCs) emerged from developing countries, such as ataxil.
Multinational Corporations The multinational corporation is a business organ- British invested in South and North America. The ‘free-standing’ company, as labeled by Wilkins multinational corporations investing in the United Kingdom in the s and s (Dunning ).
Chandler () noted that these multinational. Multinational Corporations and Economic Development in Africa.
Since the transition to democracy in South Africa, there has been a proliferation of external codes of corporate conduct. There is no question that multinational companies investing in Africa have the resources, and the responsibility, to contribute to Africa’s development.
This article will investigate this rise of Ch inese multinational corporations in Africa by, first, examining the content and conduct of Chinese firms, secondly, their linkages to government strategy and, finally, assessing their impact on Africa.
This chapter focuses on the challenges faced by human resource (HR) practitioners in multinational corporations (MNCs) in different sectors operating in South Africa. The chapter briefly outlines the global and South African challenges experienced by HR practitioners.