The Multinational Corporate Structure

Paper Summary:

This paper explains that the trend toward establishing an internet presence is becoming more and more popular as companies move to position themselves to compete more efficiently on a national and international basis as demonstrated recently by the merger between America Online and Time Life. The author points out that the flexibility provided by the internet for marketing goods and services makes it the perfect tool for the multi-national corporation because tele-conferencing, facsimile machines and e-mail practically eliminate the need for a company to invest in the physical presence of their employees in another country. The paper concludes that the combination of corporations into mega-corporation structures, which compete on a global basis through the internet and with other telecommunications technology, will provide a "synergistic" effect by giving these mega-corporations the resources to accomplish much more than their components could accomplish individually.

Table of Contents
Introduction
What is a Multi-National Corporation?
Trends in Multi-National Corporate Structure
Disadvantages of Multi-National Corporate Structure
Summary
The Internet Revolution and Multinational Marketing
Advantages of Telecommunications for the Multi-National Corporation Conclusion

From the Paper:

"An example of the key problem according to this report is that of Intel's foreign operations in certain countries. Intel will lose "35 cents on the dollar to U.S. taxes, money that could be spent on critical research, while a Japanese competitor keeps the entire dollar. It doesn't take a rocket scientist to figure out who's going to win that battle, Perlman said." Other corporations ,which are calling for changes in the tax code to create a level global playing field, include Caterpillar Inc., a major player in the multinational heavy equipment market and newly merged with automaker Daimler Chrysler Corp. and Swiss-based engineering company ABB Inc. Caterpillar feels its global competitiveness is being adversely affected by U.S. tax laws. "If we are to maintain our philosophy of build it here and sell it there, we need a modern tax policy that is consistent with our global focus," said Robin Beran, assistant treasurer at Caterpillar. The companies targeted for improvement the complexity of the U.S. code, the need to treat the 15-country European Union as one entity and the double income taxation triggered by many operations abroad despite U.S. credits for taxes paid to foreign countries."

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