CURRENT ISSUES--MULTINATIONAL CORPORATIONS Multinational corporations face many of the same issues as domestic companies.

These include maximizing profits, meeting customer demands, and adapting to technological change. In addition, multinational corporations must stay current with trends and events in the various countries where they operate. Politcal reforms in South Africa, economic liberalization in China, and social trends in Europe are examples of matters that are important to corporations operating in these countries. Accountability is also an issue multinational corporations face. Because they are so large (their annual revenues often exceed the Gross Domestic Product of some developing countries), multinational corporations can, and sometimes have, exerted questionable political and economic power in some countries. As a result, critics view multinational corporations suspiciously and sometimes seek to have host countries impose restrictions on them . International Business Issues Simultaneous efforts to promote free trade and protect domestic industry from foreign competition is one of the most pressing issues in international business today. As noted earlier, this dispute almost derailed the GATT Uruguy Round negotiations. Intellectual property rights is another important issue. International business is hindered when companies fear that their patents, trademarks, and industrial secrets will be violated abroad. Countries which fail to protect these rights may be shunned, and consequently may suffer from lack of foreign investment and access to cutting edge technology. Environmental protection efforts are another international business issue. In the business context, this issue centers, in part, on the extent natural resources in less developed countries

should be exploited for the benefit of developed countries. For example, should Philippine forests be destroyed to satify the Japanese demand for lumber. INFORMATION NEEDS Based on this discussion of international business and multinational corporations, it is obvious that those engaged in these activites have broad and diverse information needs. These needs include: -- political, economic and social analysis -- market conditions in different countries and regions -- demographic trends No single source can fulfill all these information needs. Therefore, the information professional working in the international business environment must be familiar with current information sources outlined in the accompanying PATHFINDER. He or she must also keep informed about daily world events. The best way to do this is to read, or at least scan, the Wall Street Journal, the New York Times or Washington Post, and the local newspaper daily and the Economist weekly. Television and radio news programs, especially the Nightly Business Report, Wall Street Week, and Washington Week in Review are excellent supplements. International business is business conducted across national boundaries. It is concerned with political, economic, social, and cultural conditions in a variety of countries. As technology improves international communication and transportation links, international business and international corporate activities will expand. Information professionals must understand and keep abreast of these developments. Now more than ever, no country is an island unto itself.

References:
A Guide to the North American Free Trade Agreement: Implications for U.S. Businesses. Washington, D.C. : U.S. Chamber of Commerce, 1992. Includes a glossary. Ali, Abbas J., ed. How to Manage for International Competitiveness. Bingamton, NY: Haworth Press, 1992. Aliber, Robert Z., and Reid W. Click., eds. Readings in International Business: A Decision Approach. Cambridge, MA: MIT Press, 1993. Ball, Donald A., International Business. 4th ed. Homewood, IL: Irwin, 1990. Chen, Edward K. Y., Multinational Corporations, Technology and Employment. London: Macmillan, 1983. Darling, Juanita, "Even Without NAFTA, U.S. Goods Are a Hit in Mexico." Los Angeles Times. 11 November 1993, pp.1A,38A. Duncan, Janet, "Changes Expected in Mexico as Older Tycoons Give Way." Miami Herald. 27 March 1994, p.2K. Faber, J.P., "IBM and the Latin American Market." U.S./Latin Trade. 4 (November/December 1993): 46-48. Forecast: The Magazine of Demographics and Business Statistics. 1 (November/December 1993) Special issue on international business opportunities in Mexico. Goodman, Louis Wolf, Small Nations, Giant Firms. New York: Holmes and Meier, 1987.

Halperin, Michael, and Ruth A. Pagell. Foreign Business Information: How To Find It. Phoenix, AZ: Oryx Press, 1993. Hoogvelt, Ankie, and Anthony G. Puxty, Multinational Enterprise: An Encyclopedic Dictionary of Concepts and Terms. New York: Nichols Publishing Company, 1987. Javetski, Bill, "The Ice Cracks in Europe and Japan", Business Week. 4 April 1994, 48-49. Discusses current business conditions in Europe and Japan. Johnston, M.C., "Canadian Banking in the Carribbean", North-South. 3 (October/November): 34-37. Lamont, Douglas, Winning Worldwide: Strategies for Dominating Global Markets. Homewood, IL: Irwin, 1990. Marks, Siegfried, "Latin America's Oil Outlook", North-South. 3 (June/July): 20-25. Oxelheim, L. and C.G. Wihlborg, "Corporate Strategies in a Turbulent World Economy," Management International Review. 31 (Winter 1991): 293-315. Rodriguez, Eugenio, "Computer Boom Down South", Florida Trend. 36 (November 1993): 60-61. Salinas, Nelson, "NAFTA vs. Environment", North-South. 4 (December 1993January 1994): 2-5. Souter, G., "A World of Differences: Cultural Faux Pas Can Hobble Overseas Risk Program", Business Insurance. 25 (May 13, 1991): 20.