By U. Mayrhofer
Deals an leading edge standpoint of managerial practices followed via multinational businesses. The authors study the demanding situations they face within the worldwide atmosphere, headquarters-subsidiaries relationships in addition to partnerships and networks they shape the world over.
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Additional resources for Management of Multinational Companies: A French Perspective
These advantages relate to exogenous factors that determine the locus of the company’s competitive advantage. Location advantages can be based on various elements such as natural resources, the legal system, infrastructure, workforce qualification or local demand. They can have a regional or global reach. For example, at the regional level, the geographic reach of a company can be influenced by location advantages linked to national or regional government regulation; at the global level it can result from the legal context determined by international organizations like the World Trade Organization (WTO) or the International Monetary Fund (IMF).
6 million in 2008, and are expected to reach 4 million in 2015. Such figures allow forward-looking growth estimates in this emerging market. However, the downside of this explosion in luxury goods sales is a very strong increase in counterfeit production. Thus Western MNCs may break with the principle of home production, with design and production being done locally. In 2004 L’Oreal bought Yue Sai, a brand of luxury skincare and make-up, and this trend is likely to continue. In 2010 Hermès created Shang Xia, its own brand of Chinese furniture, art objects and clothing.
In the wake of the financial crisis, a series of stimulus measures (public investment, lower taxes) were taken. With 300 million Indians living below the poverty line, the government decided to increase its expenditure in the social sector. The infrastructure sector received public investment of almost 28 billion US dollars. Another priority was to support agricultural production. Taxes on household incomes were cut to boost consumption. From the second quarter of 2009 these measures took effect, the economy recovered and, in early 2010, India seemed to regain the prosperity of the years prior to 2008.