Today the global economy turns into one big market. While global business develops, there is no regional limit in the business world. For companies to develop in today¡¯s economic environment, they must expand overseas. Because of this reason, multinational corporations appear.
Multinational corporations are the giants in the business world. ¡°As Union Nations¡¯ (U.N.) definition, multinational corporations (MNC) are companies that are based in one country (the parent or home country) and produces goods or provides services in one or more foreign countries (host countries). A multinational corporation directs manufacturing and marketing operations in several countries; those operations are coordinated by a parent company, usually based in the firm¡¯s home country¡±(Mondy, 522). Typical multinational corporations are big manufacturer. They are oligarchs in some business areas. Their subsidiary companies disperse in many countries. They have hundreds million sale. For example, Wal-Mart, IBM, Dell, General Motors, Ford, Pepsi and Coca-Cola, are truly typical multinational corporations. Multination corporations are the outcome of the high development capitalist economy. Their working region covers all business areas. After the largest profits is their goal
Culture shock appears both in the outside of the multinational corporation and also the inside the multinational corporations. Here are several reasons of culture shock appearing.
1.The difference in the understanding of the language
2.The different ways of communication
3. The different styles of management
4.The differences in laws and policies
5.The differences between nations
6.The differences in styles of thinking
Because the several different reasons of the culture shock, the culture shock appears in different forms.
1.Obvious culture shock.
2.The conflict about the different view of evaluation.
3.The conflict in ministry of personnel.
4. The conflict in different running style.