From your own perspective and drawing on specific examples discuss the potential disadvantages facing MNCs doing business overseas in the same way that they do domestically.

Essay by alphawangUniversity, Master'sA+, August 2008

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There are no clear borders in the business world today; because of the multi-national mergers and international trade, companies' nationalities become indistinct. As the globalization of markets rapidly increases, many companies realize that international expansion is necessary for competition, this movement is causing the world become a global market, and all of those multi-national corporations are finding culture differentiation is a important issue they will face. The most considerable obstructions to successful international marketing include contrary views and misinterpretations resulting from cultural differences. A successful multi-national corporation should be aware of these issues and prepared to make the necessary changes, it can save effort, time, and lots of money. In this essay, firstly I will try to find the definition of Multinational Corporation (MNCs) and culture. Then I will talk about why understanding culture is important for MNCs, and how the culture impacts the international business. After that, Euro Disney's Land will be used as a specific example to discuss the potential disadvantages facing MNCs doing business overseas in the same way that they do domestically.

At last, this essay will conclude that doing business with multiple cultures can be a challenging venture; the MNCs need to do any change to adapt to other cultures when they doing business overseas, only those being well prepared for importance of understanding culture might eventually success.

The United Nations (1973) defines MNCs as "enterprises which own or control production or service facilities outside the country in which they are based." The rise of Globalization has forced and enabled more companies to venture abroad in order to increase profitability: bigger market, cheaper raw materials, and lower labour costs. If MNCs wish succeed in conducting international business, understanding importance of culture is a key factor they cannot ignore. It is difficult to build...