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  • Essay / Management Problems Faced by Multinational Corporations

    Nowadays, business takes place in a global environment. Companies not only consider their locations or key market bases, but also consider the rest of the world. In this context, more and more companies are starting to manage multinational operations in various regions of the world. In this essay, companies that conduct multinational activities should be referred to as “multinational corporations”. By following the globalization drive, the supply chains of multinational corporations can be enriched, expensive labor can be transformed, and potential markets can be expanded. The competitive advantages of companies can thus be strengthened in a globalized market. Otherwise, some problems arise at the same time in the modified environments of foreign countries. Changed environments can be divided into four main aspects, namely cultural environment, legal environment, economic environment and political system problems. All changed environments pose challenges for multinational companies. In particular, the problems caused by a change in cultural environment are the most serious aspect of managing a multinational company. This essay will discuss these problems and give some suggestions for solving them. Tylor emphasized that “culture is a complex whole which includes knowledge, beliefs, art, morals, laws, customs and all other abilities and habits acquired by man as a member of society” . society". According to this definition, it is easy to know that every nation has different cultural preferences, national tastes and value standards. These factors impact every part of management in multinational corporations...... middle of paper ......lopment' The Journal of Management Development 21(2): 83-100Gogel, R. and Larreche, JC (1991) . Pan-European marketing: combining product strength and geographic coverage San Francisco. , California: Jossey-BassMiroshnik, V. (2002). “Culture and international management: a review” The Journal of Management Development 21(7): 521-544Tylor, Edward B. (1977). of mythology, philosophy, religion, art and customs London: John Murray Sonderberg, AM & N Holden (2002), “Rethinking cross-cultural management in a globalized business world” International Journal of. Cross Culture Management 2(1): 103-121 Wright, P., Geroy, G. and Baker, D. (1996), Management Training Challenges in Vietnam, Corporate University Review, July/August, pp.. 40-1.