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Paper Topic:

Discuss the economic advantages and disadvantages that large Multi-National Enterprises (MNE’s) have in the hospitality sector compared to small business operators. You should discuss specific examples and relate these to economic theory where relevant.

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A REPORT ON THE ECONOMIC ADVANTAGES AND DISADVANTAGES THAT LARGE MULTI-NATIONAL ENTERPRISES HAVE OVER SMALL SCALE OPERATORS IN HOSPITALITY SECTOR

1 .0 INTRODUCTION A multinational enterprise is a firm that has productive capacity in a number of countries . It may be composed of many countries coming together , under harmonized regulations to start the hospitality venture in the countries . The enterprise may also be established by foreign investors , who establish enterprises in many countries in accordance with the

countries ' laws . The profit and income flows that they generate are part of the foreign capital flows moving between countries . This is an outward approach to economic expansion . As countries adopt more open outward oriented approaches to economic growth and development , the role of multinational enterprises or transnationals corporations become more important (Hospitality and business corporate , 2008 . As local markets throughout the world are being deregulated and liberalized , foreign firms are looking to locate part of the production process in other countries where there are cost advantages . These might be cheaper sources of labor , raw materials and components or have preferential government regulation (Barnett and Muller , 1974 , pp . 8- 24

Hospitality refers to the relationship process between a guest and a host , and it also refers to the act or practice of being hospitable that is , the reception and entertainment of guests , visitors , or strangers , with liberality and goodwill . Hospitality frequently refers to the hospitality industry jobs for hotels , restaurants , casinos catering , resorts , clubs and any other service position that deals with tourists . This further implies that hospitality was in the past known as the act of generously providing care and kindness to whomever is in need . However , the contemporary man has exploited it as a business venture . Bernett and Muller (1974 ) say that there is a relationship between small scale ventures , large scale ventures and the theory of economics . Indeed , according to them , these three are important since they do correlate to a great extent (pp . 23-44 . However , as is the case with any viable business venture , proper planning , organisation and management is necessary for any organization to realise any profits and the same is true for the hospitality sector

2 .0 . MAIN BODY

We consider Hilton Hotel for a case study , to analyse the advantages and the disadvantages of Multi-national enterprises in hospitality . This is a UK- hotel that has numerous branches not only within London , but also in many countries globally . According to Thomas Keltner , Executive Vice President , Hilton Hotels Corporation Chief Executive Officer , there are ways in which large scale ventures in the field of hospitality portray more advantages than the small scale ventures . At the same time , the large multinational enterprises in hospitality have some disadvantages when compared to the small scale hospitality operations . The advantages or disadvantages , according to Thomas , may be experienced by the investor , the workers , or the residents of the concerned areas (Tourism and hospitality industry , 2006

3 .0 ADVANTAGES OF MULTI-NATIONAL ENTERPRISSES IN HOSPITALITY

According...

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