The subject of assignment at the assignment criteria box Essay

The subject of assignment at the assignment criteria box - Essay Example Multinational companies are those companies with branches in several countries. A multinational company is a main company that produces in foreign countries through its branches or partners situated in several countries. The policies of the branches and partners are directly controlled by the parent company which sets strategies for all the activities of the company that go beyond the boundaries of the host countries. These include; product marketing, personnel, financial matters as well as production strategies. The policies may have host country orientation or parent country orientation (Feldman, 2008, pp.22-27). A multinational company may be owned by citizens of one, two countries or more. In another situation, a company may establish branches in different countries in order to reduce the cost of transporting raw materials in order to reduce the final cost of the products that is added to the consumer price. A company may also establish branches in countries that import its products in order to escape import tax that may be enforced by the importing country against foreign companies. An example of this is when external levy was enforced against outsiders by the European Community, companies from the United States engaged in Foreign Direct Investment in order to evade these tariffs (Howard Perlmutter, 1969). Fluctuating exchange rates are also a factor that leads to the establishment of multinational companies in order to avoid losses that are associated with these rates. This phenomenon arises when companies produce at a high value of the local currency and then the value falls during exportation. They opt to establish a subsidiary industry in the importing country. Competition is also a factor that gives rise to multinational companies. A company X in one country may be producing the same products as another company Y in a different country, both competing for a

Grand proposal Research Example | Topics and Well Written Essays - 2000 words

Grand - Research Proposal Example Similarly, renewed economic growth stimulates political stability accordingly. Thus, it seems clear and defined that the economic development generates political development and vice versa within the development context of industrialized countries. However, for all studies into the subject of relations in economic and political development, they lack the objective evidence necessary to resolve this argument, and describe the subject accordingly (Rivero 17). Thus, this desertion pursues a cross-cultural study in three different third world countries, to evaluate the economic and political development through structured study and present evidence into the subject. Thus, the evaluable contexts in the study incorporate the countries of Chile, Peru and Bolivia, all which are neighbours. They all present a multi perspective of the subject; hence, the selection for the study. As the population continues to increase and voter turnouts remain constantly low, then the question arises into the subject of the realistic aspect in a capitalistic democratic government ability to maintain economic stability and development. Consequently, as the costs of political influence increase, the evidence within the firm level and economic aspects in the developing countries also begins to show. Thus, from these consequential effect statements, the question of the interleaved aspects of economic and political development in developing countries continues to raise simulating debates, which seem to have no end (Rivero 69). Thus, this research proposal will seek to evaluate and present evidence into the relations between the economic and political development as they influence each other from a developing countries perspective. Thus, the hypothesis for the research entails that, both economic and political development present vast evidence of aspects of interrelations, which cause them inseparable in determining and fostering a countries development process and