multinational business Archives

Being in a multinational workplace simply implies that your business has its operations in more than one country. The term is different from a business that is said to be international. An international organization has all its activities in one country but exports its products to different other countries.

The multinational business is already established in other countries like they have their offices in those other countries. It is of course very advantageous to have operations in different countries in the world rather than having all your operations centralized but exporting to other countries. You could also become a life coach and work with multinational companies to assist them to embrace a diverse work environment.

Cost Advantages

This is one of the major advantages. The multinational companies are advantageous in that they can be able to locate countries where there are tax incentives and cheap labor. If they establish even bigger operations and expand their stores in that country then they will definitely make good money as compared to the international companies.

This will be due to the incentive given by the government to private investors. Again if there is cheap labor it means the company will have lowered the cost of operations. They could even transport some of the employees to their other branches in other countries. This will effectively reduce their operating costs and hence more profits. The company will also be aware of the ideal countries where they could get supplies cheaply because of the exposure and also what business thrives in what country.

Workforce Innovation

Having employees from different nations is an added advantage to your business. The distinct cultures do give a different fundamental approach in business, society, management, and life with all its aspects. Having different cultures in your research and development team ensures your business stays at the front of innovations and inventions.

You need to know that not only products and services will benefit from multicultural co-operation in your organization. Your firm will also benefit from a wide range of ideas in production methods and marketing strategies.

Huge Valuable Network

Having a multinational company exposes you to more information and knowledge on diverse aspects of business and life in general. You will meet new customers, new cultures, prominent leaders and many other people who you will share brilliant ideas with. These multinational companies offer employees a perfect opportunity to be innovative as they share ideas from different cultures. They will also be very creative and of course, this is a plus for your business. The marketing term will come up with some value addition strategies that you couldn’t have figured out yourself.

International Travels

Your presence in a multinational business means that you will definitely be traveling to other countries. These are the countries where your company has established its operations and some of its branches. The business will require someone to be checking at how things are running, representation in meetings in those countries.

These trips including even the business trips will give you a chance to explore new places and learn about their diverse cultures and way of doing things. Understanding the different nationalities and cultures basically opens up new opportunities for you. As you meet the new personalities you will learn a thing or two from them and even leave with a brilliant idea from them.

Holiday Destination Ideas

Working for a multinational company means you are going to meet more people from virtually all over the world. During your interactions with them, they could be probably talking about their countries and places one could visit. The best holidays are the ones you head on to a place that you at least have a clue about from friends.

The colleagues at the workplace will recommend beautiful sandy beaches that they have been to and amazing restaurants that can be found within or someplace they have visited. Some colleagues will even decide to take you there for a reconnaissance such that once you plan to go there you are already familiar with the place.

Bottom Line

Simply saying, a multinational company is very advantageous more than an international one. You will be having international travels by being in a multinational company and see new cities and towns. There is also more revenue in such kind of a company hence the pay for employees is better.

Meeting with people from other nationalities opens you up to the world and to more ideas on how things work. The employees become more creative and innovative.

European companies open branches in the United States for a host of reasons. For starters, the United States gives these businesses a completely new base of customers; a chance to step out from the almost saturated European market and stand out from the crowd. Secondly, there are many government incentives in the U.S., making the business environment incredibly favorable. Last but not least, it gives them more brand recognition and a chance to reinvent their products in a hungry, welcoming market.

Starting a business or moving an existing business from Europe to the U.S. can, indeed, be an exciting time for an entrepreneur. However, that is not to mean that aren’t any thorny experiences and business-threatening challenges to contend with while there. Nevertheless, before commencing your business transition to the USA, you must be sure to acquire the necessary visa, so that you do not do anything illegally which might cause problems later on.

Apart from the UK-based businesses, those coming from other parts of Europe may have to hire a translation company to translate their content for localization purposes. That would mean higher initial and overall running costs. Besides that, here are some of the other challenges and experiences that European companies encounter when doing business in the United States:

Strong multicultural influence

The U.S. is a country founded on the pillar of unity in diversity; there are too many ethnic groupings in the country, each with their own unique culture and needs, yet they all expect outsiders to see them as one inseparable people. The multiculturalism in this country is on another level; you will have to contend with it in government offices and in the business setup.

How you handle the employees is also affected by this cultural influence as there are some historical injustices that plague the labor market up to today. That is not particularly the case in Europe as most countries in the region have a homogenous culture. Your success or failure might be tied on this seemingly inconsequential factor.

Complexity in the taxing system

The Internal Revenue Service (IRS)- revenue service of the United States federal government- is very strict with its enforcement of the federal taxes, sometimes to the point of scaring off investors who come from jurisdictions with lenient tax laws. And as if that is not enough, you will also have to deal with tax collection authorities both at the state and local levels.

Even though the government is in the process of lowering the transition tax to about 8-15% and the corporate tax from 35% to 21%, there still are some vital teething issues that would demand a skeptical approach to America’s taxation framework.

The financial sector’s influence

Wall Street, arguably the most influential financial sector in the world, is keener on short-term profits and high stock values and not the traditional long-term value opportunities. The hedge funds and investment firms on Wall Street have become so powerful that without their blessings, you may be forced to sacrifice your brand’s reputation just to impress them.

High competition from multinational corporations

America is home to some of the biggest multinational corporations. While you will greatly benefit from their existence in terms of benchmarking on their success, sometimes the competition they bring forth can be unbeatable. To make matters worse, these corporations have political connections and friends in the highest places in the demand and supply chain, so they often get the lion’s share of government incentives.

Most multinationals have their planning and thinking inclined to global markets which, apparently, greatly affect the nation’s job market. They will hire the best talents in the country and proceed to outsource and offshore manufacturing jobs to other countries overseas. That means that they will enjoy both the benefits of hiring cheap outsourced labor and highly-qualified American professionals. Also, competing with a country that outsources cheap manufacturing services can be a daunting task.

Complicated electricity and construction rules

If you wish to acquire property in the U.S., probably your main offices, you will have to pass through more than 10 bureaucratic steps before you get the legal permits to register it under your company name. Environmental inspections and reviews, for example, can take weeks if not months. In big cities such as Los Angeles and New York, you may have to wait for more than 2 months to have your electricity turned on. And if you need additional constructions in the property, that can cost you anywhere between 3,000 to 6,000 USD $ in terms of building plan check and permit.

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George Foster is a marketing manager at Day Translations.

5 Merits of a Multinational Workplace