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Multinational Corporations Article Reflection

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Q Article Comprehension Questions : MNC's target developing countries for market entry. Select two U.S. MNC's and two countries and explain how they follow Porter's five forces models. Explain two key contributions, and two disadvantages, that MNC's have on developing countries. Do you feel that outsourcing by MNC’s improves the household buying power of the host country while increasing jobs that were lost? Give me an example of increasing jobs, and decreasing employment. Brief discussion: 75 - 100 (no maximum) each section

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1. Coca-Cola and McDonald’s are the two U.S. companies and these companies have entered Singapore, and Argentina. Both of these companies have followed Porter’s five forces models for profitability and market entry in new countries. The bargaining power of suppliers for Coca-Cola and McDonald’s is weak whereas bargaining power of the consumers is low as well. Threat of the new entrants is medium and threat of substitute product is huge. Even competitive rivalry is also high.