Global Business Environment

Syndicated Euro Credits

History of  Syndicated  Euro Credits

Syndicated Euro Credits are in existence  since the late 1960s. The first syndicate was  organized by Bankers Trust in an effort to  arrange a large credit for Austria. During  the early seventies, Euromarkets saw the  demand for Euro credits increasing from  non-traditional and hitherto untested  borrowers. The period after first oil crisis  was marked by a boom phase. To cope with  the increasing demand for funds, lenders  expanded their business without  undertaking due credit appraisal of their  clients or the countries thus financed.  Further, the European banks had short-term  deposits while bulk of borrowers required  long-term deposits.… Read the rest

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Issues of International Technology Transfers

International technology transfer is the process by which a technology, expertise, know how or facilities developed by one business organization (MNC in the case of international business) is transferred to another business organization. There are many  issues associated with the international technology transfer.  The most important international technology  transfer  issues are; ways of technology  acquisition, choice of technology, terms of technology transfer, and creating  local capability.

Modes of Foreign Technology Acquisition

One of the major issues in technology transfer relates to the mode of acquisition.  Developing new technology may conjure up visions of scientists and product  developers working in R&D laboratories.… Read the rest

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Technology Transfer in International Business

Technology is a new variable in the equation of economic relations. Traditional  theories of international business assumes that all nations have equal access to technology and, therefore,  that there is no need to transfer technology from one county to another. Recent  research findings have invalidated this assumption. In addition, they point to  technology differences as primary cause of international inequalities in  economic achievements. To reduce the inequalities, technology capabilities of  the backward nations must be strengthened. The quickest way to do so is to  transfer technology from the developed to the developing nations.

Technology is any device or process used for productive purposes.… Read the rest

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Multinational Corporations and Home Country Relations

Public attitudes toward Multinational Corporations (MNCs) are biased by a nation’s position as a home or  host country. Historically, home countries have perceived MNC activities as  desirable extensions of their domestic business systems. Conversely host  countries have viewed MNCs as agents of foreign influenced and exploitation.  This historic dichotomy is now shot through with conflicting perceptions of the  MNCs. Different segments of society, such as labor, investors, consumers,  traders, and farmers, see their interests affected in different ways. As a result, a  multi-sided controversy about the societal merits and demerits of MNCs has  grown in both host and home countries.… Read the rest

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Conflicts Between Multinational Corporations and Host Countries

Although the Multinational Corporations (MNCs) has no power over the host government, if may have  considerable power under that government. By being able to influence certain  factors, the MNC has the opportunity to help or harm national economics; in this  sense, it may be said to have power against host governments. Critics of the  MNC perceive these powers as potential perils to host societies.  The strategic aspects of a host country’s national policy that are subject to the  influence of the MNC include:

1. Planning and Direction of Industrial Growth

Host nations have viewed with concern the tendencies of many MNCs to  centralize strategic decisions in their headquarters.… Read the rest

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Multinational Corporations Adaptability to Host Environments

All Multinational Corporations (MNCs) are not equally likely to cause friction and tension in their host  economies. Some adapt with relative ease and become closely integrated with  their host environment, both economically and socio-culturally; others remain  isolated and insulated, often forming alien enclaves in the host society. There  appears to be a causal relationship between the MNC’s organizational structure  that is, its organizational design as well as its underlying objectives and  strategies and its capacity for social adaptation to host country conditions.  In terms of inducement to social conflict, MNCs fall into three categories: home  dominated, host dominated, and internationally integrated.… Read the rest

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