Which Multinational Corporation?

Today’s lecture consists of two parts. One is review of last lecture, another is new one.
Before class, I talked Gusto, student majoring in business. His view is very sophisticated because he explain the case with some theories in readings listed for class; besides, he indicated miss-choice of readings!

Review: Cola War
Coke Cola is changing because of flat of demand and bad image of firm or its product. So Coke is now addressing environmental problem such as water supply or save electricity. It cost so much, but it more costly do nothing.

Case: Which Multinational Corporation?
Most interesting point for me was functions of undeveloped market. In such market, import tariff is good for domestic company, and conglomerate is also beneficial because there, market is not move functionally. However, if market developed or more compete one, the situation reverses, so conglomerate is not beneficial. Firms ultimately internationalize to get more money, but more directly, they enter other market to learn.