Examine the main determinants of Foreign Direct Investment location Essay

Examine the main determinants of Foreign Direct Investment location and strategies employed by Transnational Corporations to maximise the net advantages of the - Essay Example Globalisation is also considered as a primary contributor to the methods used to develop foreign direct investments. In addition, the continuous change in technology also pushed for firms penetrating other markets. For most trans-national corporations (TNCs), the schemes associated with maximising foreign direct investment (FDI) are intricate. These processes are developed through time considering the environmental changes and other circumstantial elements. Logically, the methods in which FDI is maximised by TNCs can be attributed to their nature and existence. Holistically, focusing on TNCs in discussing FDI requires the profound understanding of the two concepts. It is imperative to establish relationships and determine useful trends regarding the subjects. In this process, the extraction of empirical evidence is a necessity and has to be manifested with high level of credibility. Moreover, in-depth analysis will be provided to ensure that the desired outcomes will be realised. The most qualifying description of a firm to consider as a trans-national is its operations. Accordingly, corporations that function in two or more countries are defined as TNCs. Moreover, the general view of TNC is divided into three subgroups. First, horizontally integrated TNCs administer production in different locations to manufacture similar products. Second, vertically integrated TNCs use other countries as inputs for their production. Finally, diversified TNCs operate in different firms that manage production in a manner neither explained by the previous two sub-groups. McLean and McMillan (2003) stated that TNCs became popular in the 1890s. Usually, TNCs are based in highly industrialised countries and expand in different economies. It is being contended that TNCs are influential in the policy making of host countries. This is because TNCs have the capacity to boost an economy and move capital from locations to the other. In addition, some firms control

Week 2 #2 Coursework Example | Topics and Well Written Essays - 250 words

Week 2 #2 - Coursework Example Secondly, the internal pay equity creates a good sensible business; thus improving the firm’s retention of its top performers and maximize its chances of hiring a top talent in the industry. Therefore, failure to manage the internal pay equity can result in losing employees to other companies and creates disloyalty among the employees (Kramar & Syed, 2012). The external pay equity management is also important for company’s success. Employers are expected to manage carefully determine the appropriate markets. Therefore, the management of the appropriate markets helps in having accurate external wage comparison. Thus, this reduces unnecessary payments in some areas (Kramar & Syed, 2012). For instance, a narrow determination of a market can lead to wage that higher that is expected. Therefore, employee inequity and equity perception are equally significant, and companies should consider as it sets its compensation objectives (Perkins & Perkins, 2011). Employees perceiving equitable pay treatment can be more motivated in supporting the company goals of performing better. In conclusion, about compensation, fairness is reached when pay is equal to work performed