Benefits Of Multinational Corporations Essay

Like any early(a) multinational corporation, Acme Motors have been mate with various economic implications and benefits to the outside(prenominal) countries in which it operates. Acme is a aim vehicle ships partnership headquartered in Nuevo L atomic number 18do but performing other world(prenominal) business in Mexico, Spain and other countries. In the unknown countries, it has been involved in the manufacturing of motor vehicle engines above their assembly to complete vehicles. The performance of the guild is usually fed by a number of comparative advantages which are implied by its practicable capacity.Generally, the large scale capacity of the go with has been a major advantage which the company uses to create economics of scale in its operational system through its broad endowed portfolio of technology. It has been able to successfully compete in the foreign international market which is highly hawkish. The company has various artistic and management tools that help to impair the effects of foreign business culture which may lead to operational failures.It has a broad management support which compound the tools of research into the broad market and policy-making risks operating in the foreign market which may bring operational losses. Either it has also used the tools of mergers and acquisitions to help prevent the electronegative impacts of foreign market infestations. (Skene, 1992) However, the operational portfolio of the company has been faced by the challenges of negative externalities of environmental pollution and degradation in the host countries.Basically, the industrial nature of the company compounds various environmental degrading facets which include resource over exploitation emission to the air pollution, water pollution and the general socio-economic implications which are of negative external capacity. However, the problem of environmental pollution and degradation to the company assort to been a fatal problem which has eve n called for various statutory crack programs both by the company and the state government. Usually the tool of change magnitude taxation has been a subjective implication which has helped the company to change its industrial characteristics.Through higher(prenominal) cost levies by such(prenominal) foreign governments, the company has changed its industrial technology to more environmental palsy-walsy methods which cause little pollution. Generally, through such taxes, the government has then compensated the corporation for such environmental pollutions above supplying various public goods which benefit the people. (Wray, 1997) To the company, the tools for agree of environmental degradation have posited various cost implications both in the short run and in the long run.Since the system for implementing environmental watch has been achieved through change in modifying operation to capture more friendly methods, this has however been costly. Higher cost has had a negative i mplication to increases in the cost in the short run. However, increases in cost have been change through the use of proper management tools which ensure a sound balanced business management conceptions which continue to provide the company competitively advantages in the market.However, the long run cost has been reduced through higher sells achievements from the active product support from the environmental friendly consumers. (Snowdon, Vane, 1997) Generally, as an outstanding tool, the environmental aspect is an important tool which the company and any other should apply in the international portfolio. The cost of environmental degradation is costly and would perhaps outweigh the benefit cost relationship which provides grounds for competitive advantage at the market.Either, it is important in safeguarding the broad interest of the society with which the manufacturing (industrial) activity is allied to. Reference Skene, G, (1992) Cycles of inflation and Deflation Money, Debt a t the 1920s. Westport CT Praeger. Snowdon, B & Vane, H, (1997) A Macroeconomic Reader. London Rout ledge. Underwood D, (2004) Principle of Macroeconomics Toward a Multiparadigmatic approach. Journal Economic issues, Vol. 38. Wray, L (1997) Kenneth Boudings Reconstruction of Macroeconomics. Review of friendly economy, Vol. 55.