Multinational Corporation Essay

515 Words3 Pages
University of the West Indies, Open Campus Name: Adrian Tang Yuk Name of course: Principles of Management and Organization Name of Lecturer: Cynthia Langdon Date due: 22/10/2010 Topic: Select a multinational corporation which operates in Trinidad & Tobago and answer the following questions: a. Give four reasons for the growth of the multinational company. b. Identify and discuss four problems experienced by multinational companies operating in the host country. c. Identify and discuss four problems experienced by the host country when a multinational operates in its territory. BG Trinidad and Tobago is part of the BG Group public limited company, a world leader in natural gas with a strategy focused on connecting competitively priced resources to specific, high value markets. The company was founded in 1989 and is based in Port of Spain, Trinidad and Tobago. BG Trinidad & Tobago Limited operates as a subsidiary of BG Group public limited company, and is a key gas producer in the country. This multinational company was able to grow tremendously because of the great availability of natural gas within Trinidad and Tobago. Also distribution cost was significantly cheaper because of the country’s pipe-line transportation system which enabled ‘BG’ to move large amounts of natural gas from one location to another. This benefited the company financially since transportation cost was lowered thus total cost declined. Therefore, more profits were made allowing growth within the firm. Production cost played a major role in the growth of the multinational company within Trinidad and Tobago because there was a cheaper cost of labor as well as tax rates. The government of Trinidad and Tobago also offered incentives such as free access to land, allowing ‘BG’
Open Document