to achieve optimization (for the company as a whole) by diktat. However, most organizations are unwilling to go down this road, because of the enormous benefits of allowing divisional autonomy. It would be very difficult to make division managers accountable for their profits if they were not given a free hand in making important decisions.
. To ensure that the information provided (eg, division Profit & Loss Accounts) is useful for evaluating the economic performance of divisions and the managerial performance of division managers.
1. Theoretical aspects
.1 Special features of multinational corporations
of the economic hope and aspirations to get out poverty and under development which had plagued the developing world from the time immemorial is to attract foreign direct investments (FDI) into their various economies. It therefore becomes a dream come true when Multinational Corporations (MNCs) decide to invest in developing countries. Currently, there are over 35,000 multinational corporations globally, controlling more than 15,000 foreign subsidiaries and accounting for about one-third of the entire world production. The developing countries that received the most multinational investment are those perceived to have the highest growth potential. They are generally known as the newly industrialized countries and include Asian countries such as China, Singapore, Malaysia, Thailand and Latin American countries such as Mexico, Brazil and Argentina. The ten biggest recipient of foreign direct investment receive nearly 95% of the total, while all the African countries put together receive less than 4%. The poorest 50 countries of the world between them receive less than 2%., Most MNC investment in developing countries was in mines and plantations. Today mining accounts for only 6% with manufacturing and services accounting for over half and Oil & Gas for about one-third of the total. The value of the total MNC worldwide is estimated to be more than $ 1.5 trillion of which approximately one-third is in the developing countries [1]. Many of the world largest companies such as Coca cola, Shell, IBM, Guinness Breweries, General motors to mention a few have managed to spread their tentacles in most parts of the world. In terms of turnover, some of them exceed the national incomes of many smaller countries like our country, but I must hasten to add that there are also thousands of very small specialists multinationals which are a mere fractions of the above mentioned ones, that are also operating significantly in the global system. MNCs cover the entire spectrum of business activity from manufacturing to extraction agricultural production, chemical processing, service provision and finance and therefore there is no peculiar line of activity of the multinationals.in the developing countries are always on the look-out to attract Foreign Direct Investment (FDI) and are prepared to put up considerable finance by making considerable concessions because of employment. MNCs investment constitutes a stimulus to economic activity and employment creation. The employment that MNCs create is both direct in the form of people employed in the new production facility and indirect through the impact that the MNC has on the local economy. The Ghanaian economy for example has benefited immensely with the influx of m...
