Reference no: EM132319405

Assignment: Perform some research on the pros and cons of the outlook for a multinational company operating in the Eurozone. Defend your responses with proper citation of your research either from the financial press or academic papers.

This is an example below, so you can use as guide:

Pros of Multinational Corporations

1. Cost-effectiveness: Multi-national companies in the eurozone can be cost-effective as they have access to raw materials from within the European Union.

2. The large size of the market: Large size of the market has a deep impact on the overall profitability of the organization. Companies that operate in the eurozone can tap the high-income consumers with their product.

3. Currency risk is hedged: Multinational companies that function in the eurozone are hedged against currency risk exposure of the Euro if they were not operating in the Euro Zone.

Cons of Multinational Corporations

1. Local businesses lose out: Large multinational company that has operations in the eurozone can hamper the local business and can affect the livelihood of people.

2. Exploitation for profits and market share: Large organization can go to extreme lengths to generate profits and gain market share.

3. Monopoly in business: The large organization can stifle competitors and gain market share to become a monopoly which is not good for the market.

This following news article clearly suggests the pros of having multinationals, that generated 2.2 billion euro in taxes for the government of Ireland which helped it cover deficits and health care spending (Chance, 2019).The US multinationals that operate within Ireland have been able to take advantage of the market scenario which has resulted in employment generation, economic growth and collecting record taxes from multinationals.