2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING 2724 CHALLENGES FOR ESTABLISHING FOREIGN MULTINATIONAL COMPANIES IN WESTERN MARKET Alqhtani, Khaled Mohammed* Raja Irfan Sabir* In this research six variables: High Labor Cost, New business environment, Tight Policy, Lack of local raw material suppliers, Pressure of Global Financial Crisis and High Competition are considered. Based on these variables six basic questions developed. Also in the survey 100 respondents participated. Online survey is the method used to collect information and successfully collected the required information. The collected information also analyzed using SPSS software. On the top of that some secondary sources applied so as to stabilize the data. The purpose of the survey is to distinguish what are the basic challenges in Western countries to establish foreign Multinational Companies (MNC’s). And the survey result shows pressure of global financial crisis and high competition are the main challenge in Western countries to establish MNC’s. Besides High Labor Cost and Lack of local raw material suppliers are the other challenges respectively. Among the six variables only one - Tight Policy, is not considered as a challenge. This implies that there s suitable policy for foreign MNC’s in Western countries. Key Words: Multinational Companies (MNC’s), Western Countries, Challenges 1. Introduction As the name indicates, a multinational company (MNC) is usually defined as a company with operations in more than one country (Porter, 1990). Also a multinational corporation sometimes called a transnational corporation (TNC), or multinational enterprise (MNE) (Pitelis, Christos; Roger Sugden, 2000). It can also be referred to as an international corporation. The international Labor Organization (ILO) has defined an MNC as a corporation that has its management headquarters in one country, known as the home country, and operates in several other countries, known as host countries. The operations outside the company's home country may be linked to the parent by merger, operated as subsidiaries, or have considerable autonomy. * Alqhtani Khaled Mohammed, Faculty of Management, University of Warsaw. Email wead22@gmail.com *Raja Irfan Sabir, School of Management, Huazhong University of Science &Technology. Email g.buree@yahoo.com