-border supply their cash home, border charges will hobble their cross chains and the trade deals that help them do business will be rewritte American bosses this week Mr. Trump is unusual in his aggressively protectionist tone. But in many rn To avoid punitive treatment, \"all you have to do is stay he to ways he is behind the tim global integration, were already in retreat we revolts of 2016. Their financial performance has slipped so that no longer outstripping local they are firms. Many seem to have exhausted their . Mr vulnerable and, in many cases, are already heading home. The impact on Multinational firms (those that do a large chunk of their business outside ability to cut costs and taxes and to out-think their local competitors Trump\'s broadsides are aimed at companies that are surprisingly global commerce will be profound. their home region) employ only one in 50 of the world\'s workers. But they matter. A few thousand firms influence what billions of people tch, wear and eat. The likes of IBM, McDonald\'s, Ford, H&M;, Infosys Lenovo and Honda have been the benchmark for managers. They co ordinate the supply chains that account for over 50% of all trade. They account for a third of the value of the world\'s stockmarkets and they own the lion\'s share of its intellectual property-from lingerie designs to virtual-reality software and diabetes drugs They boomed in the early 1990s, as China and the former Soviet bloc opened and Europe integrated. Investors liked global firms\' economies of scale and efficiency. Rather than running themselves as national fiefs firms unbundled their functions. A Chinese factory might use tools from Germany, have owners in the United States, pay taxes in Luxembourg and sell to Japan. Governments in the rich world dreamed of thei national champions becoming world-beaters. Governments in the emerging world welcomed the jobs, exports and technology that global firms brought. It was a golden age Central to the rise of the global firm was its claim to be a superior moneymaking machine. That claim lies in tatters. In the past five years the profits of multinationals have dropped by 25%. Returns on capital have slipped to their lowest in two decades. A strong dollar and a low oil price explain part of the decline. Technology superstars and consumer firms with strong brands are still thriving. But the pain is too widespread and prolonged to be dismissed as a blip. About 40% of all multinationals make a return on equity of less than 10%, a yardstick for underperformance. In a majority of industries they are growing more
Question 6:
Multinationals have been accused of taking advantage of lower costs anywhere they could find them to increase their profits. Do multinationals really exhibit super level of profit?
Answer 6:
Yes, multinationals do exhibit super level of profits:
Question 7:
What were the consequences for International business of opening of China and of the former Soviet bloc.
Answer 7:
The consequences of opening of China and the former Soviet bloc are as follows:
Question 8:
Why could the golden age of internationalization come to an end?
Answer 8:
The golden age of internationalization could come to an end due to the following factors:
Question 9.
What are the advantages attached to being an ” intangible multinational”?
Answer 9:
The advantages of being an intangible multinational are as follows:
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