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Essay / Research Paper Abstract
This 6 page paper considers the process of awarding a large contract to the subsidiary/ies of a multinational corporation. Bibliography lists 3 sources.
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6 pages (~225 words per page)
File: D0_HVIntCom.rtf
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also frequently results in lower prices for those consumers. But what happens when the competition is within a company? This paper considers the process of awarding a large
contract to the subsidiary/ies of a multinational corporation. In this case, a U.S. company (Worldwide), with subsidiaries in Australia, Argentina and Spain has won a contract to supply locomotives
to Paraguay. Worldwide needs to decide if it will manufacture the locomotives entirely in the U.S., or give some of the work to its subsidiaries. Discussion The managers
of all the subsidiaries and Worldwide meet to discuss the situation. Each of the CEOs, and the manager of the American locomotive division, presents essentially the same argument:
that awarding the contract to them will alleviate unemployment problems; and in the case of the overseas plants, will also reduce hostility toward foreign corporations. The American locomotive division,
moreover, has the latest technology, which it has not shared with the others. There are relatively few choices here: award the contract in its entirety to the American locomotive
division; award it in its entirety to one of the subsidiaries; or split it up among all four plants. No one entity has a compelling reason to expect to
be awarded the contract: all four have laid off workers; and all four could rehire them if they got the job. The fact that the American division has more
up-to-date technology can be easily solved by making that technology available to the subsidiaries, so this really isnt an issue (though there will be some down time as the subsidiaries
get "up to speed"). The American divisions lay off of 3,000 workers seems to be balanced by the need for the subsidiaries to quell anti-American sentiment. The CEO
...