Problems and challenges faced by multinational
Further uncertainty avoidance index of a culture helps in explaining how comfortable individuals of that culture are in situation that is unplanned and ambiguous.
This is important for foreign investors because they do not wish to pay for the deficiencies in the provision of public goods by government. Petaluma: World Trade Press.
Reporting problems of multinational companies
The study concludes with how the managers of multinationals amend the human resource practices as the result of the cultural influence and the challenges posed as the result of the same in the human resource practices. Lobbying Multinational corporate lobbying is directed at a range of business concerns, from tariff structures to environmental regulations. This indicated that unsatisfactory outcome from Regulatory Reform in India Regplus, Therefore, MNCs may suffer for the ineffectiveness of the government which can lead to unexpected cost and also size of the operations being limited in the country. Clearly, this demand for the business management policies to be effective in the subsidiary management practices they should be compatible with the culture of the parent multinational company Gomez, J Int Bus Stud, 25 2 , pp. Asian Journal of Business Research, 1 2. Standardization is when the MNC tries to implement same advertisement strategies to host country that is similar to home market and adaptation is when the MNC adopt to the cultural norms, business practices and strategies of host country Wang and Yang, The focus on managing the cultural differences works in favor of the organization and also helps in serving the customer better and also equips the organization to penetrate new markets in different parts of the world efficiently and effectively. A masculine culture gives importance to aims of profitability, money, and the objective goals, whereas a feminine culture gives importance to goals such as lifestyle, compassion, and subjective goals of the organization. Culture shows a direction on how, as a society or as a group of people, perceive and evaluate things. It put the managers of the multinational organizations in a dilemma of whether to adopt consistent human resource practices across subsidiaries or to adapt human resource practices individually according to the demands of the local situations Rozenzweigt and Nahria, Another scholar Sharan, argues that, these problems related to advertisements are mainly due to the aesthic and religious views for certain host countries. This kind of problem mostly occurs when there is an absence of a reliable government authority. However, the most cited definition of culture belongs to Greeth Hofstede Minkov and Hofstede,
However, multinational corporations are often faced with several challenges. In addition to this the research also found that in Chinese Asia regional standardization is the most effective practice.
Problems caused by multinational corporations
The study concludes with how the managers of multinationals amend the human resource practices as the result of the cultural influence and the challenges posed as the result of the same in the human resource practices. This can be explained with an example; employees in different companies are motivated and can be retained with the different demands of compensation, thus justifying different policies with the change of country Fried, Cultural and business ethics. Schuler, R. Political Instability Many multinational enterprises face the challenge of political instability when doing business in international markets. This dimension helps to understand how much value a culture places on power. Law and Contemporary Problems, 37 2 , p.
It put the managers of the multinational organizations in a dilemma of whether to adopt consistent human resource practices across subsidiaries or to adapt human resource practices individually according to the demands of the local situations Rozenzweigt and Nahria, Maintaining certain culture within the organization will help the company to be ensured same values are sustained within the company.
The objective of MNC to operate in other countries is to gain competitive advantage through several ways.
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