Examine the Global Operations of One Multinational Company

Topics: Corporation, Multinational corporation, Globalization Pages: 2 (442 words) Published: May 25, 2013
A multinational corporation (MNC) or multinational enterprise is a corporation that is registered in more than one country or that has operations in more than one country. It is a large corporation which both produces and sells goods or services in various countries.It has branch plants outside of the country where its main operations and planning take place. They play an important role in globalisation.

An example on a MNC in Intel, which has a branch plant in Leixlip Co. Kildare, Ireland. Intel design and manufacture platinum processing chips for computer manufacturing companies. Intel's final customers are computer and mobile phone manufacturing companies. Intel's headquarters is located in Silicone Valley, California due to the huge number of highly skilled graduates that come from UCA and Stanford. In California, Intel employs the vast majority of its workers in California, and its second largest branch plant is in Ireland, where 5'000 are employed. Most MNCs planning takes place in highly developed 1st world countries due to the good infrastructure which promotes trading, advanced telecommunication services and absence of war. Assembly and testing takes place in less developed countries and in the 3rd world due to the lack of workers unions, and lower wages. Intel does not locate in war torn countries such as Afghanistan because War disrupts infrastructure and business in general. Since arriving in Ireland in1986, Intel has pumped more than 7 billion euro into the Irish economy. Intel is attracted to Ireland due to its very low incorporation tax which is only 12.5 %, the lowest in Europe, however, the rising utility costs in Ireland as well as the approaching water charges may cause Intel to relocate. Ireland is part of the EU and therefore Intel can freely export its produce. Intel can transport its products to mainland within 48 hours using Ireland's excellent port and airport facilities and this means that it can access the population of 537 million....
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