Research Paper on a selected Multinational Company and it's foreign Essay

Research Paper on a selected Multinational Company and it's foreign Direct Investment - Essay Example The companies making direct investments have ample control and influence over the company in which the investment is made. Countries foster open economies in order to utilize the resource of skilled workforce and explore growth prospects by attracting foreign investors, so FDI becomes an obvious choice for developing countries for economic growth and development (Gilroy, Gries, & Naudà ©, 2004, p. 50-55). According to International Monetary Fund (IMF), FDI facilitates companies to make investments with the expectation of establishing lasting relationships with the target countries. FDI was considered to be one of the major drivers of continuous growth and globalization, before the financial crisis. However, as revealed by UNCTAD in the World Investment Report of 2009, about 85 percent of the Transnational Corporations got affected by financial crisis in 2008-09. USA tops the list of FDI inflow, but many other countries have joined this list (Breitfeld, 2010, p. 1). Nowadays, we stay in one global country. This is said because there are trade and commerce taking place among all the countries. People staying in any country can make use products of different countries. From this very concept the term global marketing has come up. Now, when we say that the world has become one market, we can also say that the economies of individual countries also affect the global economy, especially the international trade. There is a lot of capital involved in international trade and commerce. Products and services costing billions of money are traded everyday among nations in the world market. So the price of currency exchange and fluctuations also significantly affect the profit and income of the marketers (Baker, Epstein, & Pollin, 1998, p. 117-120). Multinational corporations (MNCs) and FDI are complex expression that illustrates two separate but correlated concept. The MNCs or multinational enterprises (MNEs) manage their production, organization, and deliver