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Multinational Corporations - Essay Example
Author : hpollich
Pages 2 (502 words)
Multinational corporations refer to business entities with operations in many countries. The headquarters of a multinational corporation are normally located in one country whereas the facilities are based in other countries. This model enables the company to enjoy the full advantages of incorporating in a certain locality and also the ability the cost production advantage i.e…
The company is in over 220 countries and has more than one million employees.
Multinational corporations are provides an important force for the dynamics of the world economy. For instance, the Coca cola Company has been a driving force for the developing world economy as far as jobs creation is concerned Chong(1983,p.130).
In global context, Coca Cola Company exhibits certain roles and behaviours.The Multinational corporations are involved in social corporate responsibilities across the globe. For instance, the Coca cola Company supports the sports activities. The company has major sporting events internationally. The coca cola company has sponsored such sports as football in developing nations by providing the teams with uniforms, painting stadiums e.t.c
As Multinational corporations operate in many different countries, they are subject many tax jurisdictions. They are thus suppose to pay taxes in the countries that they operates. The tax systems usually differ between nations and thus the process is usually complex. These differences among the tax systems have affects the managers' decisions of the multinational corporations. The U.S government usually does not differentiate between that income which is earned at home and that which is earned abroad. ...