Parent company

involved as judges would be able to apply the principles developed to individual cases before making a decision. Due to the separate legal personality of companies, a company can own shares in other companies. This leads to the formation of corporate groups which can be made up of over 100 companies and are often owned by a single parent company . The corporate veil was introduced to protect shareholders in order to encourage entrepreneurial risk-taking and innovation . Limited liability was introduced

that an “incorporated company is a separate legal entity from its founder, shareholders and directors”. To further this point, the Albazero case provided authority within a group of companies, whereby each company is a separate legal entity with distinct legal

The parent company Danone, as part of its social activity teaches and educates Corporate Social Responsibility initiative across its subsidiary. Internal and external communication program help blend corporate global culture and shapes the best practices in the U.S where Dannon operates. Dannon views U.S market as a growth oriented with per person consumption, which is much less than other part of Europe. Dannon executives identified this opportunity as a high growth area and used its Corporate Social

Wholly owned subsidiaries of US companies such as Bahamamama, Ltd, the subsidiary of Mama Corporation, are considered a CFC, and as such companies such as Mama Corporation must determine income taxed by the US. Additionally, global organizations seek to reduce tax liabilities through transfer pricing. Transfer pricing is used to determine the price of transactions between subsidiaries and parent companies and is used to reduce tax liabilities of US parent companies. As such, tax authorities intervene

in ‘host countries’. For example, where the parent company attempt to impose its policies about the training and development of its workforce, training schemes and the need for skilled employees in an MNC are aligned with those of the parent company. Furthermore, it is widely accepted, that in a MNC which adopt and embrace an ethnocentric approach, cultural values and corporation’s strategy of the country of origin are predominant, whereas the company assumes that such an approach would be advantageously

a. According to the textbook, the reasons that provide motivation for companies’ international expansion and describe them. • Traditional motivations • Resource Seeking: secure supplies. • Low-cost factor: exploit factor cost differences • Market Seeking: fulfill capability; exploit scale economies and scope economies. • Emerging motivations • Competitive positioning: match competitors, preempt markets, capture the global scale, play “global chess”. • Global scanning: global

Disadvantages • Requires more money, time, and energy • Handle all the logistics • No buffer zone in case something bad happens ii. Indirect Exporting: Product is not exported directly by the manufacturer but through export agents. Advantages • Almost risk-free to start • Minimal involvement in export process itself • Concentrate on domestic business • Limited liability for marketing product in the new market Disadvantages • Lower potential profits • No control on foreign sales • No knowledge of

Reorganization is the process of extending the life of a company that is facing liquidation by restructuring it in order to carry out activities which minimizes reoccurrence of past situations. Type A reorganization involves consolidation and merging and it gives greater flexibility since there is no restrictions of voting stock. Nontaxable status is not affected by removal of unnecessary assets. Additionally, this type of reorganization saves on time as approval from shareholders, which often brings

Journal of World Business 39 (2004) 168–182 An integrated model of knowledge transfer from MNC parent to China subsidiary Pien Wanga,*, Tony W. Tongb, Chun Peng Kohc a School of Business, National University of Singapore, 1 Business Link, Singapore 117592, Singapore b Fisher College of Business, The Ohio State University, Newark, OH, USA c International Enterprise Singapore, Singapore Abstract Based on an empirical study of 62 firms, this paper develops a two-stage model describing knowledge transfer

down- and upsides. Entering a new market gives both great opportunities and involves high risk. There is much at stake but if one choose wrong entry mode it can cost the company tremendously, that is why one should not take this decision based on a few factors. The globalisation has given companies a bigger