Research Paper on:
Multinational Gillette Corporation

Unformatted Sample Text from the Research Paper:
each of the markets is as diverse as those in different countries all over the world. MULTINATIONAL CORPORATIONS A wise businessman once said, "Diversify, diversify, diversify-that is the key  to financial security". But is this indeed the answer? Numerous studies have been conducted which point to the conclusion that financial diversification is not a cure-all for the  disease known as business risk. Burgman (1996) points out that because multinational corporations such as the Gillette Corporation operate in many different correlated economies simultaneously the capital structures in  these organizations should be able to support more debt than those of purely domestic corporations. Diversification such as this should therefore result in a less volatile earnings market and  probably less chance of bankruptcy. Multinational corporations in the case of Gillette would appear to have not only less expected bankruptcy costs, but also a higher leverage ratio because  of a trade-off between expected bankruptcy costs and the tax shelter of debt. However, Burgman (1996) goes on to explain that evidence exists that multinational corporations, in fact, have  less debt in their capital structure than do many purely domestic corporations. It has been said by Deputy Secretary of the Treasury Stuart E. Eizenstat that the countries of  the region, including Morocco, need to "do more to reduce economic barriers among themselves so that they can be more competitive globally" (Economy in Morocco PG, 2001). The Gillette  Company, while operating in Morocco and on a good basis with the company, agrees that there should be more sanctions lifted which would make doing business within the region a  little easier. DIFFERENT ANSWERS According to Geiger (1998) there have probably been more studies of diversification within the framework of corporate performance than in any other strategic management area.