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Management in Multinationals

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The list of complaints against multinational corporations is a long one. As a result, many countries have tried to restrict their operations. Some, such as Nigeria and India, have said that a certain percentage of the foreign company must be owned by local investors. Other countries insist that a percentage of the managers of the multinational corporation must be local stuff.

Multinational corporation's managers will spend much of their time working overseas. They will, therefore, be living and working in a strange environment. They will have to deal with people who have a different language, customs, religion, and business practices.

Differences in culture are important when a manager is negotiating in a foreign country. For instance, many Europeans and Americans like to get to the point quickly when negotiating. This is not is some countries, like Brazil, where people prefer to beat around the bush more. They take their time, trying to create a relationship of trust. In such countries, the European or American manager must be patient, or else he will come away from a deal empty-handed. In Japan, there are often long silences during negotiations – especially if things are not going smoothly. European and American executives tend to react in the wrong way when this happens. They make a concession or talk in a over-eager way, so that they lose ground in the discussions.

Finally, those abroad must remember that a deal is not always a deal. In some countries, a person may say "yes" to a proposal simply to be polite, or agreeable.