'Multinational Company Requirements\r'

'Discuss the portions that a international corporation needs to consider in context of use up a pulverisation in a developing country? (20) A transnational company is any organization that has its headquarters in champion country, but with operating branches, factories and assembly plants in oppo internet site countries. A factory is an industrial building where workers hoard and concentrate resources to manufacture adepts and operate machine touch wizard product to another i. e. value adding. ontogeny country is a nation that is poor and whose citizens atomic number 18 mostly agricultural workers but it wants to become more advanced socially and economically.It is a nation with a grim living standard, undeveloped industrial base, and low Human Development Index (HDI) relative to other countries. Factors needed to be considered in setting up a factory:- * Natural Routes * Site fate * Access to the market * Availability of crude(a) materials * experient labour * Po wer Supply * Industrial gene linkage or strategical Importance * Government incentives unmatchable of the factors needed to be considered is the Site requirement. In developing country the democracy rents and values ar cheaper so it’s an advantage to the company.The Land must be cheap, flat, undulating, and well-drained so that the construction of the factory is economical and environmentally friendly. The land chosen must be adapted enough for alterations when considered necessary. Moreover, the climate and weather conditions at the site atomic number 18 approbatory for production of goods throughout the year. another(prenominal) factor is the get at to the Natural Routes. The firm would be of great benefit if there is major land or sea route for transportation of raw(prenominal) materials and industrial goods. Road, Rail and Air Transport are procurable. This would give speedy and cost-effective transport.Other factors are the access and availability to the market place and raw materials. The outdistance between the site and market or raw material’s site should be apprise and rapid enough for greater, inexpensive and reliable cut of raw materials and industrial goods. The raw materials should be available at an affordable and discounted price. One other factor is the presence of skilled labor force. Factory should be situated in an bailiwick where cheap work-force is on hand. A decent numbers and ample transmutation of workers are available, with reasonable skilled and knowledge, at or near the site. other factor is the presence of power supply. in that respect should be ample sources of power like electrical energy and gas, with an adequate amount and at cut-rates. The factory should be situated in an area where government may provide incentives and cast down taxes. The incentives could be in track of grants, low interest rates, simplified planning procedures and training. Another factor is industrial linkage or Strategic Re ason. The firm should be established in area which is closed to linkage industries such as suppliers and customers from which any(prenominal) benefit could be gained.It should be apart from alike and rival organization in order to reduce competition and gain greater market dispense in that area. Perhaps the major factor that a transnational company needs to consider is the weft of the developing country. The chosen country should have good communication links with the country where headquarters of the multinational firm is located. The country shouldn’t be that a lot meager and poverty-stricken that sales aren’t lucrative and corporation doesn’t prosper. Language, legal and cultural differences with local workers and government officials could lead to misunderstandings.The host country or chosen country’s policies should be favorable and these ethnic and literary divergences are overcome. Consequently, a multinational organization should set up fac tory in that location which satisfies all these aspects. However, it is unlikely that all the factors impart be available at any one particular location. So the location for a factory is to be chosen in such a way, that the total cost of bringing all the inputs together, producing the goods, and distributing the products to the market, are minimized and maximum profit is generated.\r\n'