Business

Running head : BUSINESSBusiness[Author][University]BusinessMultinational firms has been trying to establish their manufacturing firms from different move of the globe just to utilize the resources of possible host republic in to attain competitive advantage over their competitors and pick at the costs of their production that gives an avenue for the marketing team bounteous flexibility in setting the price level of their products or services in the market . But before ingress into a certain agricultural , for sure , transnational companies did drive thorough investigation ab tabu the possible benefits that they could get out of establishing their manufacturing plants or the degree of return of investment that the stockholders of the company pass on get from the said imagine on their host democracy . The reason why transnational firms would like to check the underway economic system of their prospect host realm would be to evaluate how will they become profitable from the said venture and how tall will be the possibility of being in(predicate) from operating into the said country . Factors such as utilisation productivity and distribution of goods as well as social institutions are included in the economic system of a certain country (Watkins 2003 . It is a must for a multinational firm to determine the condition of the said factors to know the ongoing situation of the charter and supply of goods in the market as well as the possibility of threat coming from their competitors .

If the demand is low and competition is tight , it would be beneficial for the multinational firms not to pursue the establishment of their manufacturing plants or company subdivision on the said kind of country . Moreover , multinational firms also consider the current policies of the government of the host country like tax level and schemes on how to own a land that is very of the essence(predicate) when starting up a . If the policies of the government are not that suitable in the disposition and financial capabilities of the company , then , better find another(prenominal) country that could offer better terms and agreements as compared to countries with high tax level etc . in this regard , it is clear how important the determination of the current economic system of a country before investingReferencesWatkins J (2003 . Global History : Economic Systems . Retrieved February 10 , 2008 , from HYPERLINK http /regentsprep .org /Regents / global /themes /economic /index .cfm http /regentsprep .org /Regents /global /themes /economic /index .cfmBusiness PAGE MERGEFORMAT 2...If you want to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .