Contents

Part A Question (1)................................................................................................................................1

Part-B Question (2)................................................................................................................................3

Part A Question (1)

Changes in the global economy have led companies in emerging countries to focus on growth
and to shift their attention to overseas markets. To enter the international market, it is
necessary to understand the background of the industry in which a company operates and the
environmental factors that compose the company to achieve international success. It is
necessary to identify factors that are directly related to the market (customer preferences and
preferences, purchasing habits). Product design in each country) and growth potential. Other
factors that need to be analyzed are country appeal, degree of protectionism, political factors,
public support, local suppliers and qualified personnel.

Globalization is represented by a global network of symbols that can improve

business models, corporate strategies, new technologies, production processes, corporate
work model relocations, and new relationships between companies, suppliers and customers.
Due to the high level of local and international competition, outsourcing and relocation,
domestic and international competition is becoming more intense. In response to increasing
competition, many companies are implementing international strategies in sales activities and
manufacturing of products and services. To choose the best globalization strategy, a strategist
(manager) who understands how to describe a company's status and conditions in a global
economic and business environment and is responsible for leadership, decision-making, and
results. Is required. Generally speaking, change is the effect of change. The latter is to pay
something, take something or place it. That too is changing. Through a brief reflection, we
have noticed that things change over time, often they grow up, meet each other and become
different shapes, ages and deaths. Due to (in some cases) external or internal factors, the
above may occur in organisms or other important elements.

Organizations are not subject to the above restrictions. The potential to influence change can
exist in our social, family, or work life, and can also impact our work teams and entire
organizations.

One of the most difficult obstacles companies face is recognizing that defining their business
model is less effective than it once was. Markets are changing, customer preferences, or the
emergence of new technologies are facing the difficult decision of companies to change their
survival priorities..

In fact, few companies have succeeded in changing the core of their business to maintain
their livelihoods, in fact reversing trends and recapitalizing.

An example of a company that is aware of market changes and has decided to overturn its
seemingly fatal destination is the International Business Machines Corporation (.IBM), after
its market has been robbed by Microsoft and Apple's competitors. Focused on the survival of
the industry.

Other companies that are trying to reform themselves to avoid disappearance and drive
growth include:

1. PayPal: The company's founder Max Levchin declared that he worked on encryption for
the book "Founder at Work" in 1998, and later became a money transfer service via a PDA.
Almost killed the company after many years of trial and error and overcoming fraud scandals.

2. Google: In the first few months of its birth, the world's largest search engine didn't even
have a business model. In fact, Wired magazine editor John Batelle pointed out that Google
was a low-profit company at the time and was in a state of loss. After earning some revenue
from selling enterprise-oriented search engines, a company in Mountain View (California)
decided to participate in digital advertising through AdWords in 2003.

Google Reported Digital Marketing Revenues of $ 21 Billion in 2008, Changing How Digital
Content Is Generated.

3. Facebook: Initially, unlike other social networks, Mark Zuckerberg's platform is for
college students only and can only be used if invited. However, as this limited the growth of
the company, the founder decided in 2005 to make it public to anyone over the age of 13 with
a valid email address. Facebook sold 1.6% stake to Microsoft for $ 240 million, and there are
rumors that the first public offering (IPO) bothered the network.

4. YouTube: When Google acquired the video platform for $ 1.6 billion in 2006, Fox News
said the service hadn't announced a net profit yet, and that 2008 advertising revenue was only
"$ 200 million". It was However, according to data released by Mashable in March 2010,
YouTube's annual revenue has reached about US $ 1 billion. This was achieved by signing
cooperation agreements with content developers such as NBC, ABC, CBS, and also launched
a partnership program that allows popular users to share the advertising revenue generated by
their videos. Was.

Part-B Question (2)

Introduction : MNC’s outlook in general in Malaysia

According to a 2007-2009 FDI survey released by the United Nations Conference on Trade
and Development (UNCTAD), Malaysia is one of the top 20 countries in the world to attract
foreign direct investment (FDI). Asia China and India are the first two largest economies,
followed by the United States, Russia and Brazil. Among Southeast Asian countries,
Malaysia is the third largest FDI region after Vietnam and Thailand, ranking 6th and 12th
respectively in the overall ranking.

With multinational companies in more than 60 countries and investments in more than
3,000 Malaysian manufacturing companies, Malaysia is captivated by its excellent
business environment, making it the premier location for the global manufacturing and
service industry. There is. To do. 1. Many of them are already reinvesting in multiple
projects.

Malaysia has a strong information structure and infrastructure, a well-educated

multilingual workforce, and a large multinational corporation (MNC) consisting of large
foreign companies and many multinational corporations. I think this is an attractive
service organization. Currently, 1052 regional organizations are approved, including 67
business headquarters, 182 international procurement centers, 29 regional distribution
centers, 579 representative offices and 195 regional offices. The main sources of foreign
investment are the United States, Germany and Japan.

Part 1: Economic and Government’s Policies - MNC’s strategies concerning trade,

foreign direct investment and taxation of state revenues.

Malaysia is a developing country. Ma Ritz --- Silicone Aha, ni agriculture and

commodities ni in the 1960s Kara, HI-Te ku, knowledge Bakelite-su, capital intensive
industry ni branch , Has grown up. Over the last 40 years, the structure of Malaysia's
economy has changed to something terrifying. Malaysia is often called a "lucky country"
because of its wealth of minerals and fertilizer dragons, so it's still stopped. Mashin Yeah
Yeah Yeah Yeah Yeah Yeah Yeah Yeah. I. The ambition of output is high-tech,
knowledge-based, capital-intensive industries.

The economic and financial crisis of mid-1997 hit many countries in the Asia-Pacific region,
leading to a currency crisis and the collapse of Malaysia's stock market, further
demonstrating the strength and resilience of the Malaysian economy. With the help of
selective forex control and the Ringgit, Malaysia has recovered and moved in the direction of
economic recovery.

Large multinational companies are likely to outsource core and non-core activities, thereby
increasing investment opportunities for support.

The tendency of large multinationals to tend to outsource their core and non-core businesses
provides an opportunity for investment support services. Malaysia continues to enjoy a
healthy foreign trade surplus, low unemployment, strong international reserves and high
domestic savings. (Source: www.mida.gov.my, October 14, 2007)

Government’s policies

Government policies that maintain a business environment and provide opportunities for
growth and profits make Malaysia an attractive manufacturing and export hub for the
region. Malaysia's Private Sector Becomes Public Sector Partner to Achieve National
Development Goals.

A major factor in attracting investors to Malaysia is the government's commitment to

maintaining a business environment that provides companies with growth and profitability
opportunities. The Government's ongoing commitment demonstrates this commitment to
getting feedback from the business community through consulting channels, such as
regular government-private sector dialogue. These allow different business communities to
express their opinions and develop relevant government policies.

Liberal Equity Policy

Generally speaking, Malaysian manufacturing foreign investors can hold 100% stakes in
projects that export at least 80% of their products. However, since June 17, 2003, all
investments in new and existing companies are investments in expansion / diversification
projects and can hold 100% foreign capital regardless of exports.

Attractive Tax Incentives

The corporate tax rate in Malaysia in 2007 was 27%, which is very attractive. Both
resident and non-resident companies adopted a tax rate of 26% in 2008 and further reduced
it to 25% in 2008. Malaysia also offers a wide range of tax incentives for manufacturing
projects under the Investment Promotion Act and Income Tax Act of 1986. In 1967, the
main priority policies were “pioneer status”, “investment tax preference”, “reinvestment
preference”, “tech industry preference” and “strategic preference”. Permanent projects and
incentives for foreigners to establish international / regional service businesses.

Employment and labor market

Malaysia provides investors with a young, educated and productive workforce whose
costs are competitive with other Asian countries. Malaysia's workforce is the highest in the
region, and the government continues to support human resource development in many
areas.

Industrial Training

In 1993, the Government launched a Human Resource Development Fund to encourage

private sector training, retraining and skill development. The National Vocational Training
Commission, under the Ministry of Human Resources, is responsible for coordinating the
planning and development of a comprehensive system of vocational and industrial training
programs for all public training institutions. To date, there are over 700 standards for
certificates, diplomas, and higher qualifications. In addition to the increase in public
training institutions to meet the increasing demands of the industrial sector between the
Malaysian government, businesses and foreign governments.

Infrastructure development

Malaysian industry is mainly distributed in more than 200 industrial zones or parks and 13
free industrial zones (FIZ) in the country. State and private developers are constantly
developing new sites and these roads are equipped with road, electricity, water and
telecommunications infrastructure to meet demand.
FIZ is an export processing zone designed to meet the needs of export oriented industries.
Companies in the FTZ are allowed duty-free imports of raw materials, parts, components,
machinery and equipment directly required in the manufacturing process. In areas without
a FIZ, companies can set up licensed manufacturing warehouses (LMWs) that have
similar equipment to those that FIZ companies enjoy.
 Part 11 : Industrial Harmonies and Challenges for Trade Union

· Violation and Lack of law enforcement

Only about 8% of the labor force joins the union. Trade unions seek to maintain their
independence from the government and political parties, but government control is
everywhere and extends to the union's internal affairs. The Malaysian Trade Union The
Federation covers the private and public sectors and has 500,000 members.It is not a
recognized legal union.Except the High Court agrees. to 36 months to resolve the request
is not uncommon, especially in the case of disputes.MTUC cited DGTU's case of
arbitrarily refusing to organize and bargain with over 8,000 manufacturing workers in the
past 36 months.At the end of 2006, MTUC cited many cases of union unions refusing to
approve unions.

Employers often face the challenge of requiring the Minister of Labor to approve unions,
and the High Court and Appeals Court are hearing many cases.

Limited social security for workers

No minimum wage law

Since there is no minimum wage standard in Malaysia, multinationals are willing to work
long hours and their salaries are so low that they intend to hire more foreign workers than
local workers.

The government has no reason to postpone the adoption of the minimum wage law that
applies to all workers. Employers of many multinational companies take advantage of the
unjustified benefits of wage restrictions without a minimum wage requirement. hundred.

Refusal on retrenchment fund

The economic environment is usually an unpredictable cycle of prosperity and decline,
which makes it difficult for workers to plan their careers and the future of the family in a
clear way, because they do not know when they will lose their livelihood.

As the participation of the private sector in national economic activities becomes more and
more important, and the scale of public sector participation in infrastructure development
and services decreases, workers' fear of the unknown not only intensifies, but also has a
serious impact on sex. The donation will increase at a rate of 2 ringgits per worker per
month.The current donation of 5 million SOCSO members can generate 10 million
ringgits per month, or 120 million ringgits per year.

Trade union rights-migrant workers intimidated to not join trade unions. There are
approximately 2.5 to 3 million migrant workers in Malaysia, of which 1.8 million have
been recorded. Migrant workers (as of September 2007, nearly 2 million) are prohibited
from joining trade unions. The Ministry of Human Resources has announced that migrant
workers can join unions at work, but the immigration authorities issuing work permits
strictly prohibit migrant workers from joining unions. Employers stipulate the conditions
for not joining a union. The Department of Labor has not taken steps to rectify this
conflicting policy.
Most migrant workers from all parts of Southeast Asia and South Asia, if any, work long
hours at very low wages and often suffer from oral and physical abuse. MTUC continues to
demand and continue to insist on this right to give migrant workers the full right to form
unions and unions. The migrant worker registration system also prevents workers from
asserting their rights. Employers have full discretion to dismiss workers for almost any reason
(ITU 2007 Annual Trade Union Violation Investigation

Efforts and Progress made in realising the Principle and Right

In 1988, after the successful lobbying of a U.S. semiconductor multinational company in
Malaysia, the Malaysian cabinet lifted the trade union ban on the electronics industry,
limiting trade union registration to internal trade unions. did. The Cabinet, through the
Human Resources Minister, instructed the DGTU to grant only to trade unions within the
electronics industry. This is a follow-up of the DGTU's decision made in 1976, where
electronics and electrical equipment are divided into two divisions, so that electronic
workers are effectively subsidized by the established Electric Industry Union (EIWU).
You cannot participate.

Following the decision of the High Court in 1989, the first internal trade union was
revoked. In this case, the company changes the business registration number. The court
ruled that the company has become an "independent body." The union broke up. The trade
union dismissed the appeals court in 2004 and dismissed the suit. In 2005, the Trade
Union Federation revoked the registration of an internal trade union on the grounds of a
court decision.
The union was not revoked under the "Union Law" of 1959. (See 2007 AR Government
Statement). After deregistration, the worker representatives established a program
committee in 2005 to establish the Electronic Industry Union (EIEU), but the group was
rejected by the DGTU in 2007 for technical reasons. The Program Committee has
forwarded another application to the DGTU, but since July 2007 it has been pending
registration by the government.

A multinational company founded a shop in Malaysia in 1974. For 30 years (in the second
generation), workers have no unions. In the last 36 months, DGTU has arbitrarily rejected
the organization and collective bargaining rights of more than 8,000 workers from the
following manufacturing companies: In these companies, unions accepted members, but
employers DGTU deprives the union of its collective bargaining power, as the union is
represented by the DGTU.

Below is the list of MNCs companies which refuse the formation of union

Metal Industry Employees Union

(1) Ueda Plating (M) Sdn. Bhd. 60 members

(2) Hiroshige (M) Sdn. Bhd. 713 members
(3) Diamet Klang (M) Sdn. Bhd. 96 members
(4) Soritsu Technology (M) Sdn. Bhd. 135 members
(5) Kobe Precision (M) Sdn. Bhd. 160 members
(6) Kawamura (M) Sdn. Bhd. 67 members
(7) NSK Micro Precision (M) Sdn. Bhd. 294 members

7
 National Union of Petroleum & Chemical
Industry

1158
(8) Shin-Etsu Polymer (M) Sdn. Bhd. members
(9) SNC Industrial Laminates Sdn. Bhd. 268 members
(10) W.R. Grace Specialty Chemical (M) Sdn. Bhd. 51 members
(11) Ryoka (M) Sdn. Bhd. 272 members
(12) Takahata Precision (M) Sdn. Bhd. 494 members

Electrical Industry Workers Union

1079
(13) Mitsumi (Segamat) Sdn. Bhd. members
1670
(14) Matsushita Electronics Corp (M) Sdn. Bhd members

(15) Malaysian Appliance Components Sdn. Bhd. 334 members

(General Electric)

Even in situations where the DGTU has ruled infavour of the unions the
following employers cited the restrictive provisions of the trade union act
to challenge his decision at the High Court and Court of Appeal :

(16) Top Thermo Manufacturers Sdn. Bhd.

(17) Senju Metal Industries Sdn. Bhd.

 (18) Kiswire Malaysia Sdn Bhd.

(19) Pacific Quest (M) Sdn. Bhd.

(20) Dipsol Chemicals Sdn. Bhd.

(21) Syarikat Marulee (M) Sdn.Bhd.

(22) White Horse Ceramic Industries Sdn. Bhd.

More than 2,000 employees of the aforementioned company were deprived of collective
bargaining rights before the court ruled.

Many multinational companies take dubious and unethical steps in the name of
globalization to circumvent union recognition and refuse to negotiate with unions. Many
multinationals also use judicial review as a way to lead to long-term resolution of labor
disputes.

Japanese and Korean multinational corporations (MNCs) strongly oppose trade unions.
Japanese employers persuaded the secretary-general of the union sector to persuade them
to remove more than 3,000 workers from their union members. Despite the majority of
seats, trade unions that organize metal, electrical, chemical, and non-metallic mineral
products have been denied approval. Japanese multinational corporations have also filed
lawsuits with the High Court, usually avoiding union recognition, which lasts three to five
years. (ICFTU, 2003 Annual Survey of Trade Union Violations)
In other cases, in 2006, DGTU rejected State Petrochemical Workers' Union claims against
four companies in the Kaneka Group. The company rejected the union's approval and the
slower formal process also meant that the application was postponed for five years, by which
time many of the original union members had left. Therefore, the union no longer has enough
members to be recognized.

1. BAT on a Union Busting Mission

British American Tobacco has launched a series of activities to kill the 44-year-old British
American Tobacco Employee Union, which represents the company's 629 employees. The
company classified production technicians as process experts and deprived them of the right
to become members. The union stated in its allegation to DGIR that, except for the name
change, its responsibilities were essentially the same. They are still producing machines. They
reduced the number of workers and increased the amount of work, so they raised wages.

DGIR is still conducting research to identify the identities of the 70 production technicians
reappointed on January 9, 2007, but the collective agreement should not cover all 200 sales
and promotional personnel. Notified the union.

British American Tobacco has also announced plans to outsource some of its traditional
activities that eliminate the need for positions such as Bryman, chargers and electricians. 109
employees will be dismissed. As a result, the number of members has decreased by 60%.
Most members of the president and trade union executive committee are no longer members.
The actions of the British American Tobacco are clearly aimed at weakening and killing the
internal unions.

Of course, when Human Resources Minister Datuk Nato Fong Chan Onn decided that the
company's decision not to allow production workers to continue union membership was
correct, the BAT trade union's hopes for justice were shattered. The Minister's decision
underscores the power and influence of multinational corporations in the country.

Then, on February 28, several long-term technical and maintenance service employees were
denied access to the factory building by security personnel without prior notice. All of them
previously rejected the company's appeal to leave through a voluntary segregation scheme.
After a strong protest from the union, the company instructed all eight employees to stay
home with paid leave until the end of March. Company behavior indicates that these
employees will be fired in the name of layoffs.

British American Tobacco is currently asking another company to take over the maintenance
service, and the two companies have brought their own staff. MTUC has asked the HR
Director to urgently intervene to terminate the contract. On October 10, 2007, MTUC filed a
complaint with the International Labor Organization and the OECD.

Nature of complain against the company:

Unfair labour practice and anti Union activities Union

busting activities

Failure to commence Collective Bargaining with BATEU

Background-The British American Tobacco Employees Union is a trade union of workmen,

duly registered under the Trade Union Act 1959 to represent employees in British American
Tobacco (Malaysia) Bhd and its subsidiary companies.

British American Tobacco (M) Bhd is a subsidiary of UK based British American Tobacco
PLC.

Summary of the Violation by Top Thermo Manufacturers(M) Sdn Bhd.

Likewise BAT, the Top thermo manufacturing (M) Sdn. Bhd is a Japanese based company
also practiced the union busting tactics. It has been extremely uncooperative and going to
great length to deny their employees the right to be represented by union. In four years of
the workers joined the industrial union the company has been:

· Dismissed the organizer;

· Openly adopted discriminatory practices against union members;

 · Refused to extend cooperation to Human Resources Ministry officials;

· Obstructed the process of recognition;

· Refused to accept the departments ruling on membership scope of the Metal

Industry Employees’ union;

· Continue to defy the human resources Minister’s order to recognize the union; and

· Has caused frustration and delay by abusing the legal process.

Conclusion

In general, multinational companies play an important role in Malaysia's employment trends.

This is because unions are less dense and lead to the development of internal unions. Also, the
labor movement is now faced with many problems and is generally said to pose a major
challenge to the ability of workers to protect their interests. These issues are:

Since the 1970s, the power and influence of multinational corporations (MNCs) has been
linked to a strong anti-union position. They limited union growth and impact, deleted
effective minimum standards, blocked minimum wage legislation, undermined collective
bargaining, and flooded the labor market with foreign worker.

Trade liberalization and the implementation of deregulated technology caused by

globalization and competition do not adequately consider the impact on the workforce.

Failure to ratify Convention 87 on Core Labor Standards and Freedom of Association and
Freedom of Association, and to bring related laws, policies and practices into line with the
spirit of Conventions 87 and 98.
In multinational companies, subcontracting / outsourcing work has become a trend, and trade
union movement and differentiation at the trade union level are also weakening.

Unfavorable domestic labor laws that exclude trade unions from many economic activities

The bargaining power and influence of multinational corporations has increased significantly.
The claim of multinationals is that labor standards and workers' rights clauses drive out
investors.

Large-scale reorganizations, ongoing M & A (especially multinational

corporations), and continued shrinking scales are deteriorating global employment,
labor and living conditions.

Traditional work systems are changing, with an increasing focus on flexibility and
reorganization, resulting in a flat, work-intensive organization.

Environmental protection

Unethical employers engage in harmful “competitive” competition and reduce costs. Result:
unstable work

More and more women join the workforce; women suffer from discrimination, low wages,
sexual harassment, and poor working conditions.

Violations of trade union rights.

References
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https://api.turnitin.com/paperPermission.asp?svr=29&lang=en_us&r=35.2477918869639

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http://icapitaleducation.biz/index.php?section=5&sub=2c

Global Insight World Inc., Industry Service database; 2005

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