Multinational Companies

Vasilisa ViktorovaSofia KononovaAnastasia SlabodkinaDiana Abaidullina

Gr.5202

Agenda:o What is multinational corporation?o Types of multinational corporations

o Advantages & disadvantageso Legal, political & cultural issues

o Examples of multinational corporations

o Questionso References

What is multinational corporation?

A multi national corporation (MNC) or enterprise (MNE), is a corporation or an enterprise that manages production or delivers services in more than one country.

A corporation that has its management headquarters in one country, known as the home country, and operates in

several other countries, known as host countries.

Types of multinational corporations

They say that out of the 100 largest economies in the world, 51 are multinational corporations...

Actually this is 37, only 5 of which will be in the top 50.

Advantages & Disadvantages

• Access to Consumers

• Access to Labor• Laws

•Taxes and Other Costs

Tax policy towards multinational companies.

MNCs are subject to multiple tax jurisdictions, they must pay taxes to several countries

Territorial Tax Jurisdiction – the government taxes income that is earned on the national territory ( in Russia, tax rate is 20%)

National Tax Jurisdiction: both domestic and foreign source income of national companies are subject to income tax. ( ex.: USA – tax rate 35%)

International power

Market withdrawal

Lobbying

Cultural issues Each culture has its own beliefs and values.

To be successful in these foreign countries - multinational companies must be able to recognize and adapt to the differences.

Successful Multinational

companies

Q &

A

What is National Tax Jurisdiction?

In Russia, tax rate is 20% or 30%?

Which company has failed while entering a new market and why?

How to identify a multinational corporation?

Name the types of multinational corporations

References: http://www.roche-duffay.ru/articles/taxation.htm http://www.globalissues.org/issue/50/corporations http://www.enterpriseethics.org/Portals/0/PDFs/

good_business_chapter_13.pdf http://www.deloitte.com/view/en_NZ/nz/services/tax-services/

be021397a5e8c310VgnVCM2000003356f70aRCRD.htm Harvard Business School: Globalization Feature - Why Being

Multinational Is No Longer Enough National Bureau of Economic Research: Effects of Multinational

Company Investments U.S. Small Business Administration: Exporting & Importing http://corporate.walmart.com/our-story/our-business/i http://en.academic.ru/dic.nsf/enwiki/138412#Companies http://www.referenceforbusiness.com/management/Mar-No

Thanks for your

attention!