Multinational Corporation Expansion Essay Example | Topics and Well Written Essays - 1500 words

Multinational Corporation Expansion - Essay ExampleThe policy-making and legal factors ruling the target company determine the ease with which the organization asshole establish its business. fit understanding of the demographics as well as socio-cultural environment of the target marketplace will determine the strategies and promotional plans for market growth. In the current expansion plan, the company chosen is Pfizer, largest pharmaceutic company worldwide. The target market chosen will be Vietnam, where the company has launched its operations yet. COMPANY DESCRIPTION Pfizer is a multinational pharmaceutical company based in United States (Pfizer, 2013a). It is one of the largest pharmaceutical companies in terms of revenue. The company is gnarled in manufacturing and production of vaccines and medicines for a wide range of medical conditions. The company has its operations in more than 42 countries around the globe. In the current making plan, the company is planning to la unch its business in Vietnam (Pfizer, 2013b). COUNTRY DESCRIPTION Vietnam, also known as Socialist Republic of Vietnam and is located in the easterly coast of Southeast Asia. The realm is bordered by china, Laos and Cambodia. Hanoi is the capital of Vietnam. The country has a undivided party socialist system, with the government and the president having executive powers. The country is inhabited mainly by the Viet, constituting about(predicate) 86 percentage of the total population. The average life expectancy is 73 years. Around 70 percent of the demographics belong to age group 15- 64 and merely 7 percent of population constitute 65 years or above. In terms of health and malnutrition, it is one of the major issues in rural provinces. The country has suffered from diseases such as malaria and has made progress in establishing a south health system. DIMENSIONS OF INTERNATIONAL pay Management of international finance deals with monetary and financial decisions taken in the area of international business. high gear inflation of international trade is responsible for the growth in international business. Thus, while doing international trade, betrothal of trade and tariffs is normal and financial management becomes critical as these trade laws and regulations are distinct for different international markets. International finance is different from domestic finance. There are three dimensions of International finance which differentiates it from others 1. Political risks and Foreign exchange, 2. Imperfections in market, and 3. Expanded set of opportunities. Political risks and Foreign exchange When individuals and companies are involved in cross-border transactions, they are exposed to risk associated with foreign exchange markets. These are foreign exchange risks and policy-making risks. The companies are exposed to risk in terms of currency rates and nature of the foreign markets. To moderate these risks, Pfizer can opt for conducting business in the local currency. Vietnams forex market has remained low, so to decrease the forex risk, Pfizer can utilize the foreign risk management techniques used in United States. Political risks range from unthought changes in tax laws to inappropriate or misuse of assets by foreigners. The economic development