Midterm question #1

MNC's are complex organizations however, they dominate the worldwide market. Knowing the background and nature of MNC's, answer the following:

1. Identify the benefits and disadvantages of MNC's.

-the benefits of MNC is to avail low cost of labor or materials to produce, to take advantages of the low wages to produce certain parts, to gain access to any other market areas for which the phil. offers peculiar advantages in view of international political reason, and also to avail the trademark of the company. The disadvantages of the MNC are they can't order products to the other suppliers, slow response of repairing equipments and machineries, and difficult to control.


2. Identify one MNC company and describe its operation.

-the company that uses MNC is the honda motors company because they operate their business not only in local areas but also in international areas globaly.

3. Describe how the parent control/coordinates with its subsidiaries in other countries or region.

-By using this startedies which is the Global Business Strategies accdg. to Jahangir Karimi and Bean Konsynski like multinational strategy, global, international and transnational strategy by acquiring computer of each members.

4. How is IT maximized or used by this MNC?

-IT is maximizing or used by this MNC by communicating and gathering question by the use of computer and internet and by putting MIS,ESS,TPS, and ect.

5. WHat were the weaknesses/problems encountered by this MNC from its environment and global setup?

-the problem that the MNC encountered is by having the manegerial degree loss
the problem to look for and environment and location if its accesible to the people and the loss of equity and the last is the problem of the attitudes and behavior of your environment.

Cite your reference: own explanation and understanding

by: Kenjie John Dabon BSBA