What are the relationships between DEGREE OF INTERNATIONALIZATION and ORGANIZATI

Question

What are the relationships between DEGREE OF INTERNATIONALIZATION and ORGANIZATION PERFORMANCE using the data set provided

The world's top auto maker MNEs, ranked by foreign assets, 2016 (Millions of dollars and number of employees) Ranking by: Assets Sales Employment Market Net Assets Employee Mkt Cap Profit Foreign assets TNI b Corporation Home economy Foreign Total FA/TS Foreign Total FS/TS Foreign d Total FE/TE TNI
(Per cent) value Income Turnovers productivity to Sales Margin 1 9 Toyota Japan 303 678 435 958 69.7% 173 529 254 753 68.1% 148 941 348 877 42.7% 60.2 238,925 17,666 0.58 0.73 0.94 6.93% 2 8 Volkswagen Germany 197 254 431 888 45.7% 192 093 240 366 79.9% 346 715 626 715 55.3% 60.3 124,335 13,117 0.56 0.38 0.52 5.46% 3 10 Daimler AG Germany 138 967 256 127 54.3% 143 547 169 555 84.7% 112 430 282 488 39.8% 59.6 103,741 8,418 0.66 0.60 0.61 4.96% 4 3 Honda Japan 130 067 169 537 76.7% 112 614 129 228 87.1% 143 424 208 399 68.8% 77.6 0.76 0.62 5 4 Nissan Japan 116 612 164 734 70.8% 88 651 108 189 81.9% 87 584 152 421 57.5% 70.1 46,140 3,770 0.66 0.71 0.43 3.48% 6 11 BMW AG Germany 106 244 198 730 53.5% 88 934 104 174 85.4% 36 670 124 729 29.4% 56.1 80,263 7,011 0.52 0.84 0.77 6.73% 7 2 Fiat Chrysler UK 86 599 109 985 78.7% 113 442 122 821 92.4% 145 389 234 499 62.0% 77.7 1.12 0.52 8 12 Ford US 70 153 237 951 29.5% 58 367 151 800 38.4% 93 000 201 000 46.3% 38.1 63,011 3,187 0.64 0.76 0.42 2.10% 9 13 General Motors US 53 687 221 690 24.2% 48 070 166 380 28.9% 101 000 225 000 44.9% 32.7 60,389 3,949 0.75 0.74 0.36 2.37% 10 5 Robert Bosch Germany 51 200 86 302 59.3% 64 809 80 904 80.1% 255 307 389 281 65.6% 68.3 0.94 0.21 11 7 Renault SA France 49 381 107 624 45.9% 43 451 56 691 76.6% 100 473 124 849 80.5% 67.7 26,923 2,285 0.53 0.45 0.47 4.03% 12 1 Volvo AB Sweden 37 948 44 020 86.2% 34 194 35 266 97.0% 64 804 84 039 77.1% 86.8 0.80 0.42 13 6 Tata Motors India 30 589 40646 75.3% 35 675 42 087 84.8% 34 360 76 598 44.9% 68.3 1.04 0.55 14 14 Hyundai South Korea 23 450 140568 16.7% 31 826 81 184 39.2% 44 792 109 748 40.8% 32.2 39,832 6,715 0.58 0.74 0.49 8.27% Note: Foreign Assets/Total Assets Foreign Sales/Total Sales Foreign Employment/Total Employment Assets Turnover = Sales/Assets Employee Productivity = Sales/Employment Profit Margins = Net Income/Sales Mkt Cap to Sales = Market Value/Sales

Explanation / Answer

The relationships between Degree of Internationalization and Organization Performance is that it is assumed that to a greater number of countries or subsidiaries where the firm operates, generates an increase in the performance of a firm. But there are many number of models which shows that the relation between them such as Positive and Linear Model, Positive but Diminishing Returns Model, u Shaped, Inverted U Relationship and Sigmoid Relationship.

According to the data, we found out that the if the foreign assets are more in percentage then the productivity of the company is more. The company performance is based on the Turnover ratio, market value, net income, Assets turnover, employee productivity, and market capitalization whereas the factors such as Assets, Sales and employment in terms of foreign to the total. The performance of the organization is directly related to the company performance here as the company performance is better so the employee work hard and generates more sales to the company and the income also increases with the sales. In most of the case such as Honda, Nissan, Fiat, BMW AG etc. the Sales percentage is more so it indicates that the company performance in the home location is also better. The expansion comes when only the home based company performance reaches a certain level.

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