International Business
Introduction
A multinational company is a corporation business enterprise with manufacturing, sales, or service subsidiaries in one or more foreign countries. Multinational companies reflect the strengths and weaknesses of their own country, so that sometimes government authorities spend public money supporting local industries or individual companies. It brings both opportunities and pitfalls for national firms in engaging their governments on their behalf. It is the WTO’s job to prevent downsides, allowing government support only if it is genuinely in the wider public interest – if it aims to benefit society or the economy as a whole. This essay provides some examples and data to explain what are the merits and demerits of government facilitating business through WTO, and in which ways the local administration support their industries and how effectively do the governments’ support work.
Many governments help businesses make the most of global trading opportunities. Local industries supported by the localhost administration in different ways. For instant, governments offer various forms of grants, interest and tax relief, guarantees, holdings in companies, goods and services provided on preferential terms, etc.
Firstly, the government can help the unemployed and disadvantaged start-up businesses of their own through special schemes, such as grants and financial funding. In 2004, the government recognised the need to encourage start-ups in disadvantaged companies so the Phoenix Fund was set up (Open Forum, 2012). The major objective of this scheme was to encourage investment in new and growing businesses. However, the unemployed population is still being ignored and some of them genuinely want to work but have met with one difficulty or another (Open Forum, 2012). The government can help by creating enabling opportunities for people to set up their own businesses at home. They can also set up Enterprise Allowance Schemes which will serve as incentives to
A multinational company is a corporation business enterprise with manufacturing, sales, or service subsidiaries in one or more foreign countries. Multinational companies reflect the strengths and weaknesses of their own country, so that sometimes government authorities spend public money supporting local industries or individual companies. It brings both opportunities and pitfalls for national firms in engaging their governments on their behalf. It is the WTO’s job to prevent downsides, allowing government support only if it is genuinely in the wider public interest – if it aims to benefit society or the economy as a whole. This essay provides some examples and data to explain what are the merits and demerits of government facilitating business through WTO, and in which ways the local administration support their industries and how effectively do the governments’ support work.
Many governments help businesses make the most of global trading opportunities. Local industries supported by the localhost administration in different ways. For instant, governments offer various forms of grants, interest and tax relief, guarantees, holdings in companies, goods and services provided on preferential terms, etc.
Firstly, the government can help the unemployed and disadvantaged start-up businesses of their own through special schemes, such as grants and financial funding. In 2004, the government recognised the need to encourage start-ups in disadvantaged companies so the Phoenix Fund was set up (Open Forum, 2012). The major objective of this scheme was to encourage investment in new and growing businesses. However, the unemployed population is still being ignored and some of them genuinely want to work but have met with one difficulty or another (Open Forum, 2012). The government can help by creating enabling opportunities for people to set up their own businesses at home. They can also set up Enterprise Allowance Schemes which will serve as incentives to
References: * Debate org., (2012) Should the government intervene with the free market and save failing businesses? [Online]. Available at: http://www.debate.org/opinions (Accessed on 1st April 2013) * Open Forum, (2011) Why the Government should help Young Entrepreneurs start business [Online]. Available at: http://goo.gl/uYwiZ (Accessed on 1st April 2013) * Office for National Statistics, (2008) UK Business Statistics [Online]. Available at: http://nationalstatistics.gov.uk (Accessed on 1st April 2013) * Stokes, D. and Wilson, N. (2006) Small Business Management & Entrepreneurship. London: Thomson Learning * UK Legislation, (2012) Employment and Tax-related Laws [Online]. Available at: http://www.legislation.gov.uk (Accessed on 1st April 2013)