Multinational Corporations And The Political Stability Essay

Multinational Corporations in Switzerland Located in Central Europe, Switzerland is known for its natural beauty, chocolate, banks, neutral stance on global politics and hosts the worlds most innovative hub. Switzerland has a track record for attracting global organizations and a variety of industries. Switzerland offers beneficial opportunities for their citizens and the global organizations with no discrimination. This is a very unique model that Switzerland upholds within the fabric of its country. Let’s take a walk thru and analyze the risks in Switzerland; with a focus on the Political Stability, Economic Factors, Subjective Factors, Laws and Regulations and Capital Flight. This paper will breakdown a colorful analysis for multinational corporations deciding to invest Switzerland. Political Stability Multinational corporations would need to look into the political stability in Switzerland. The Swiss have a stable government, their President is elected by their Federal Assembly under the Federal Council for a one-year term. The Federal Council members are a total of seven members, they collectively area considered as the head of state. Switzerland is also made up of twenty-six cantons, cantons area also member states. They are considered to be a direct democracy; their system allows for their citizens to propose changes. In an article by Adam Withnall he informs us that Switzerland is one of the eleven countries in the world that is free from conflict. Withnall alsoShow MoreRelatedInternational Monetary Policy : Effects On Cross Regional Mergers And Acquisitions1511 Words   |  7 Pagesrate stability, capital mobility, and domestic monetary autonomy (Cohen, 2010). Concerning the China, the general international monetary choices should be capital mobility and domestic monetary autonomy. In an era where multinational corporations are increasingly looking to cross-regional mergers and acquisitions to create value, it is more important than ever for China to retain capital mobility and domestic monetary autonomy (Cross-Regional, 2015). Through an examination of multinational corporationsRead MoreAnalysis Of Three Fundamental Assumptions Are Made1578 Words   |  7 Pageseconomic growth. 3. The power dynamic between host country, home country, and Multinational Corporation is a driving factor in cross-regional mergers and acquisitions and thereby domestic economic growth as measured by nominal gross domestic product. The Murdell-Flemming Trilemma or â€Å"Unholy Trinity† states that a government can only generate policy that satisfies two of three general desires; these desires are exchange rate stability, capital mobility, and domestic monetary autonomy (Cohen, 2010). ConcerningRead MoreGlobal Organization And Its Impact On The Global Economy1251 Words   |  6 Pagesorganization has become a barrier that stops its entry into the sector, higher than profitability, which explains why some corporations have focused, in recent times, more on strengthening their position abroad, although their economic performance does not justify this endeavor. The process of economic globalization is both a resultant of the increasing activity of multinational organizations and a cause of their increasingly stronger internationally affirmation. However, global organizations activityRead MoreThe International Telephone And Telegraph Company1336 Words   |  6 Pages 1. Introduction Big companies such as Multinational Enterprises (MNEs) is characteristic of the capitalist economic system which have a role as non-state actors. However, it is shown to have an important role and can determine the direction of the economy of a country that these companies invested. Multinational enterprises have developed since the early 19th century. In the 20th century, with the growth of information technology and transport, causing the expansion of international trade is increasingRead MoreHow Does Exchange Rate Stability Affect Hedging Strategies For Multinational Organizations?832 Words   |  4 Pages23 AUG 2015 Unit 6 Exercise Assignment How does exchange rate stability affect hedging strategies for multinational organizations? Multinational organizations enjoy economies of scale that can span between multiple continents. Due to the size of the multinational organization, there can be risks that creates ebbs and flows of profits and expenses based upon multiple currency rate exchange differences. If the multinational corporation owns foreign direct investments, and the currency appreciatesRead MoreForeign Exchange Risk1048 Words   |  4 Pagesdefined as the additional variability experienced by a multinational corporation in its worldwide-consolidated earnings that results from unexpected currency fluctuations (Jacques, 1981). Multinational businesses exporting or importing goods and services or making foreign investments throughout the global economy are faced with an exchange rate risk, which can have severe financial consequences if not managed appropriately. Multinational corporations often sell products in various countries with pricesRead MoreGlobalization And Children s Diets1097 Words   |  5 Pagessuch as obesity and diabetes. An equity issue discussed in the article is food globalization, particularly the effects it has on the Maya people of Mexico. Barry Bogin et al. defines food globalization as the integration of the products of multinational corporations alongside changes in dietary patterns, which influences the biology, social structure and principles of people (12). As much as it is unlikely for globalization to reproduce a â€Å"single world society,† the same can be said for food globalizationRead MoreFinal Project Milestone Two : Moonlight Meadery Essay802 Words   |  4 PagesCo., in Australia. Recent intentions to expand operations globally spurred interest in Ireland for its economic, taxation, and cultural potentials. Ireland is home to many U.S. corporations and subsidiaries, including Intel, Boston Scientific, Dell, Pfizer, and Facebook (IDA Ireland, 2011). Collectively, U.S. multinationals in Ireland employ over 115,000 people in over 700 firms within the country (American Chamber of Commerce, n.d.). Additionally, Ireland’s corporate tax rate is 12.5%, which remainsRead MoreThe Potential Of Foreign Corporations ( Mncs )1520 Words   |  7 Pageslong lasting investment opportunities because of the nature of their political system. Possibly one of the most surprising and interesting cases where a country has failed in this endeavor is that of Russia. Russia has always had several difficulties in attracting FDI, this paper will demonstrate how Russian difficulties in attracting FDI are a cause of the countries weak, democratic, domestic institutions, its corrupte d political system, and its conflict [more recently] with the West. This paper willRead MorePolitical Status Of Italy993 Words   |  4 PagesItaly Economy and Political Status Italy is a member of multiply organizations which include the European Union (EU), World Trade Organization (WTO), and the Organisation for Economic Cooperation and development (OECD). As a member of EU Italy has a value-added tax (VAT) for all imported goods. The VAT is additional tax on goods being imported to the country which is currently set at 22% with the possibility of it increasing to 25% in 2018. As member of these organization Italy’s economy is heavily