!. Identify the benefits and disadvantage of MNC's
Ans. Advantages:
- generate tax revenues
- lower prices
- products do not depend so much on price of raw materials
Disadvantages:
- decreasing employment in industries which do not have comparative advantage
- decreasing bargaining power of labor
2.Identify one MNC company and describe its operation
Ans. A multinational company has branches in may countries. Ford and Sony are examples.
Multinational companies do bring some benefits to developing countries. They provide jobs and increase the wealth of the local people. The country gains some wealth by way of taxes.
However, there are some problems as well. The jobs are often low-skilled and poorly paid. Much of the profit will go out of the country, and the company may pull out to relocate in a country where it can make a greater profit. Multinational companies are primarily interested in making profits for their shareholders. Paying wages is an expense that the company will try to reduce to as low a level as possible.
3. Describe bow the parent control/ coordinates with its subsidiaries in other countries or region
Ans. Through this acquisition, ContentWatch will increase Net Nanny's functionality and market presence for consumers. Likewise, ContentWatch will expand its reach in the consumer marketplace with the help of Net Nanny's strong channel presence, as well as its trusted and popular brand.
"We recognize and acknowledge Net Nanny as a strong and longstanding market leader," said Jack Sunderlage, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ContentWatch, Inc. "ContentWatch is a newer and emerging leader in Internet filtering and parental controls that has been strongly acknowledged as the technology leader in competitive product reviews. ContentWatch is installed in over 125 countries to date and through this acquisition we are able to provide the best of all worlds to our combined set of customers, as well as rapidly accelerate our plans for aggressive worldwide market growth."
Sunderlage pointed out that in addition to the technology and excellent customer support this acquisition will provide Net Nanny customers, ContentWatch also brings to Net Nanny a close partnership with Microsoft as an advanced filtering alternative that is tightly integrated with Vista.
"The sale of Net Nanny serves the market, the brand and LookSmart stockholders best," said John Simonelli, CFO See Chief Financial Officer. for LookSmart Ltd. "While the parental control market is no longer relevant to LookSmart's long term strategy, we recognize the asset's value to consumers. We believe that ContentWatch's attributes of technology leadership and strong industry partnerships will add to the value of the Net Nanny brand."
Under the terms of the agreement, ContentWatch is acquiring all of the assets of Net Nanny from LookSmart Ltd. ContentWatch will adopt the Net Nanny brand for its consumer offerings. The company will also bring Net Nanny into its existing expansion plans and industry partnerships that include ContentProtect's key partnership with Microsoft and integration with Vista.
ContentWatch will continue to develop and expand ContentProtect as its business offering; however, customers of both products can anticipate expanded functionality as the integration and further development plans for the two product lines progress.
ContentWatch assumes responsibility for Net Nanny's customer support and further development. The company anticipates it will add new employees as needed as needed prn. See prn order. at its corporate headquarters in Salt Lake City.
Sunderlage further noted that Net Nanny helps ContentWatch to enhance a spectrum of internet protection offerings that range from home and consumer to all sizes of businesses and organizations. At the higher end Coordinates:
For other places with the same name, see Billinge.
Higher End or Billinge Higher End is a district of the Metropolitan Borough of Wigan, in Greater Manchester, England. , ContentWatch recently launched ContentProtect Pro server Appliance A self-contained computer system specialized for network use. Its applications are pre-installed, and access to setup and configuration is via a Web browser. Server appliances may provide a single application or several applications; for example, a single device may provide file server, , a client-server or server Internet filtering appliance that supports up to 1,000 users per server device--further rounding out its product offering.
4.How is it maximized/ used by this MNC?
Ans.Another concern with transnational corporations is their ability to use foreign subsidiaries to minimize their tax liability. The Internal Revenue Service (IRS) must analyze the movement of goods and services between a transnational company's domestic and foreign operations and then assess whether the transfer price that was assigned on paper to each transaction was fair. IRS studies indicate that U.S. transnational corporations have an incentive to set their transfer prices so as to shift income away from the United States and its higher corporate tax rates and to shift deductible expenses into the United States. Foreign-owned corporations doing business in the United States have a similar incentive. Critics argue that these tax incentives also motivate U.S. transnational corporations to move plants and jobs overseas
http://www.askmehelpdesk.com/international-business/multinational-companies-88808.html
5. What were the weaknesses/ problems encountered by this MNC frim its environment and global setup?
Ans. The common problem encountered by multinational company is the economic crisis,culture of different subsidiaries,the different location,capitalization,expenses,communication,and management.
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