Contents

Question (1).................................................................................................................................................1
Question (2).................................................................................................................................................3
Definition of MNC....................................................................................................................................3
STATISTIC.................................................................................................................................................3
Foreign Direct Investment...................................................................................................................4
The Gross Domestic Product...............................................................................................................4
EVALUATION............................................................................................................................................5
The contribution of MNC in Malaysia.................................................................................................5
The advantages of MNC in Malaysia..................................................................................................5
The disadvantages of MNC in Malaysia..............................................................................................5
CONCLUSION...........................................................................................................................................6
REFFERENCE................................................................................................................................................6

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.

Question (2)
Multinational corporations are also known as multinational corporations or multinational
corporations. These three have the same definition and functionality. A multinational company is
one that manages business in one country or its headquarters and has a branch office in another
country. Multinational companies bring pros and cons to host countries.

Definition of MNC

According to the Business Dictionary, a multinational company is one that does business in more
than one country / region, but manages in one (country) country / region. According to books on
international economics, they divide it into three parts. First of all, in terms of scale,
multinational corporations are only in international demand. Second, through the structure of
multinational corporations, multinational corporations include the country in which the company
operates, the owner of the company and the citizenship of the top management. Finally, it
depends on performance, revenue, sales and asset characteristics. Another impact of
multinational corporations is the flow of funds, products and knowledge between organizational
units.

A feature of multinational companies is that they need to own and own or control value-added
activities in multiple countries and establish strategic alliances with other companies.
Multinational companies will also bring new technologies with new capital and enter regional
markets. A feature of multinational companies is that they display the global business of one or
more companies.

STATISTIC

Foreign Direct Investment

Foreign direct investment is investment from another company in another country. Malaysia can
then profit and develop the country. Malaysia is one of the top 20 foreign direct investment
attracting countries, according to the United Nations Conference on Trade and Development
2007-2009 World Direct Investment Outlook. The first factor that makes Malaysia the twentieth
foreign direct investment option is the fact that Malaysia has young, strong and savvy talent.
Since Malaysia is also trying to develop the country into modern technology, foreign direct
investment is necessary to invest in Malaysia. If this happens, it is a technology exchange and
will enhance Malaysian technology understanding

The Gross Domestic Product

Domestic production weakness (GDP) is one of the basic indicators of national economic
performance. GDP purchases and purchases. It is a non-inclusive clause of the product tax and is
the owner ’s production property. Free goods. The most commonly used method of balanced
quantitative GDP is the revised expenditure method.

The graph above shows a graph of GDP from 2005 to 2009.

The bar chart above shows that GDP increased from 2005 to 2009. Since 2005, Malaysian
Ringgit has shown gross domestic product of 4492.5 billion. Since then, the total in 2006 was $
479,192 million, which is still increasing. In 2007, this figure was $ 505,353 million. In 2008 and
2009 they were 528.804 billion and 528.86 billion respectively. This shows that the effect of
multinational companies investing in Malaysia is increasing GDP every year.

The figure above show the pie chart of sector of MNC in Malaysia.

Many multinational companies in other countries have invested in Malaysia. Multinational

companies have specific areas. There are sectors of agriculture, forestry, fisheries, mining,
manufacturing, construction and finally services. For mining and manufacturing, this figure is $
42,176 million, or $ 119.34 million. The total GDP of the construction industry is $ 16,071
million. The largest sector that affects the GDP of multinationals is the services industry. The
total amount can be proved at 303,695 million. You don't have to get FDI from the outside. In
addition, Malaysia has wider forests and waters. Unlike the agricultural sector, services make up
the bulk of GDP. Malaysia is a developing country, so many technologies are needed, especially
in the service sector.

EVALUATION

The contribution of MNC in Malaysia

Malaysia is one of the region's most talented manufacturing and exporting countries. According
to the United Nations Conference on Trade and Development 2007-2009 World Investment
Outlook, Malaysia is listed as one of the 20 countries with the most foreign investment in the
world. " In addition, Toyota, Hitachi, Ford and IBM are all examples of multinational companies
contributing to Malaysia. A major factor in attracting foreign companies to do business in
Malaysia is the government guarantee that the trading environment will be maintained and
foreign investors will be provided with profits and development opportunities. In Malaysia, there
are many types or departments of multinational corporations. These sectors include
manufacturing, agriculture, mining, construction, forestry and service industries.
The advantages of MNC in Malaysia

The advantage of Malaysia's multinational corporations is the increased financial resources. This
happens when other multinational companies abroad start operations in Malaysia, and Malaysia's
foreign exchange rates indirectly boost the economy. Therefore, they can learn and use
technology to develop the country. In addition, Malaysia has its own natural resources such as
oil, oil and natural gas. For example, Perodua Malaysia's sixth model, Perodua Myvi, is based on
the Japanese automobile industry Daihatsu Boon and Toyota Passo. The Malaysian automotive
industry and the Japanese automotive industry are joint ventures developing new products and
technologies.

The disadvantages of MNC in Malaysia

Malaysia is based on different races and religions and is concerned about its culture and religion.
In addition to this, overreliance on foreign technology allows us to take advantage of Malaysia's
weaknesses and manage our local industry. In addition, foreign countries will undermine
Malaysia's economic plans and make them more prosperous than local countries. This is because
in Malaysia you can find workers with low labor costs and low raw materials.

Moreover, doing business in Malaysia is attractive because Malaysian tax rates are lower than
national rates.

CONCLUSION

Multinational corporations (MNCs) have a huge impact on the country. This has advantages and
disadvantages. According to foreign direct investment, Gross Domestic Product (GDP) is
increasing year by year. Since the early 1960s, the expansion of Malaysia by multinational
companies has had a major impact on Malaysia's economic and social development. Technology
transfer is also conducted in Japan. Many are currently based on this technology. This is a
country advantage to attract foreigners to Malaysia, as it is one of the countries that has made
Malaysia a developed country. In addition, they can gain a lot of knowledge to train the talented
and educated people of the country. Multinational companies are also making huge profits to
Malaysia. These have many impacts on the benefits of the country, but they also bring
disadvantages to the country. When social transfers occur, they have some negative
consequences for the country. For example, if there are too many multinational companies from
abroad to invest in Malaysia, the locals will have little opportunity to invest in the domestic
industry as it will automatically dominate the industry. In addition to this, national technology
depends only on foreign countries. It simply allows foreign companies to capitalize on the
advantages of the host country and create their technologya.

REFFERENCE
Economy Watch, Malaysia Industry Sector [online] Available at:

[Accessed on 18 November 2010]

Natarajan M. & Tan J.M, 1992, The Impact of MNC in Malaysia, Singapore & Thailand

[ e-book], Institute of southeast Asian ,Available at: < http://books.google.com.my/books>

[ Accessed on 21 November 2010]

Trade Chakra, 2008. Foreign Investment in Malaysia [online] (Updated 7 Dec 2009) Available
at: [Accessed on 19 November 2010]