Can you read the article first ( I took pictures of this article), then please a
ID: 1114808 • Letter: C
Question
Can you read the article first ( I took pictures of this article), then please analysis this article, and use the questions below as a guild. You don’t have to answer the question, it’s just a guild to analyze this article. ( just simply to analyze, don’t have to be long.) ( please must type not handwriting because something i cannot read your handwriting?Question one: What is the premise of the article?
Question two: can you explain why do you think there is a large difference in the number of jobs versus the percent of world trade for multinationals?
Question three: Who are the three parties that made the boom in global business occur? Did the mood toward multinational companies change after the financial crisis and why?
Question four: Is nationalism a solution? How has the internet effected global trade?
Chrome .11 5:26 PM @ 27% 1 The Economist Multinationals The retreat of the global company The biggest business idea of the past three decades is in deep trouble Print edition | Briefing Jan 28th 2017 IT WAS as though the world had a new appetite. A Kentucky Fried Chicken (KFO) outlet opened near Tiananmen Square in 1987. In 199o a McDonald's sprang up in Pushkin Square, flipping burgers for 30,ooo Muscovites on its first day. Later that year Ronald McDonald rolled into Shenzhen, China, too. Between 199o and 2005 the two companies' combined foreign sales soared by 400%. McDonald's and KFCembodied an idea that would become incredibly powerful:
Explanation / Answer
The premise of the article is fall of globalization. KFC and McDonald have seen their share values and profits fall. Politicians have come to threaten the multinationals. The multinationals have become the prey.
Multinationals enjoy cheap labor and rawmaterials from lesser developed countries. Now, multinational profits are declining and investments in multinationals are falling relative to GDP. Global firms are in retreat. Return on equity has fallen.
American firms are doing better in performance.
Three parties that made boom possible are investors, headquartered countries in which global firms are domiciled, host countries which received multinational investments.
Mood has changed since the financial crises. Multinationals have come to be seen as agents of inequality. Political willingness to help multinationals has fallen.
E-commerce is gaining strenghth. PayPal and Alibaba are performing well.
Investors in multinational portfolios will suffer and economies relying on capital inflows from foreign companies will suffer.
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