A Multinational Corporation (MNC) refers to a large company with investment in one or more foreign countries, also known as a transnational or international corporation. Such corporations typically offer technology, finance capital, and marketing skills in exchange for a lucrative market in developing countries. However, these corporations may also invest in high-class industrialized nations. Multinationals hold significant power and can influence foreign government policies, a point that has been the target of criticism. Nevertheless, many host countries have imposed regulations and given these corporations a greater share of profits, markets, and job opportunities.

Multinational corporations can be categorized into three integrated types based on their production structure: horizontally, vertically, and diversified. Horizontally integrated multinational corporations involve managing production establishments in different countries producing the same or similar products, e.g., McDonald's. Vertically integrated multinational companies operate production establishments in specific countries to produce products serving as inputs to other country/countries, e.g., Adidas. Diversified multinational corporations manage production establishments in different countries not belonging to the aforementioned categories, e.g., Microsoft.

The Walt Disney Company (NYSE: DIS) is the second-largest media and entertainment firm in the world after Time Warner. Founded by brothers Walt and Roy Disney on October 16, 1923, as a small animation studio, Disney has grown to become one of the biggest Hollywood studios and owners of eleven theme parks and several TV networks, including the American Broadcasting Company (ABC). Disney's corporate headquarters and primary production facilities are located in Burbank, California, in the United States' largest multinational corporation, with primary service in entertainment programs, theme parks, toys, books, computer games, and media networks.

Disney has entered into option and forward contracts that change in value as foreign currency exchange rates change to safeguard the value of its foreign currency assets, liabilities, and commitments and uncommitted foreign currency transactions. The corporation hedged forecasted foreign currency transactions for a period that generally does not exceed four years within an established minimum and maximum range of annual exposure to reduce risk. The gains and losses on these contracts offset changes in the U.S. dollar equivalent value of the related asset, transaction, commitment, or liability. The principal currencies hedged include the euro, Japanese yen, British pound, Chinese yuan, and Canadian dollar. Cross-currency swaps were used to convert foreign currency-denominated loans into U.S. dollar-denominated loans.

Disney designated foreign exchange forward and option contracts as cash flow hedges of firmly committed and predicted foreign currency transactions. As of October 3, 2020, and September 28, 2019, Disney's net foreign exchange cash flow hedges' notional amounts were $4.6 billion and $6.3 billion, respectively. Mark-to-market gains and losses on these contracts were deferred in AOCI and recognized in earnings when the hedged transactions occur, offsetting changes in the foreign currency transaction's value. Disney has established policies and procedures to manage the company's exposure to changes in interest rates, foreign currencies, and commodities using a variety of financial instruments. The company targets fixed-rate debt as a percentage of its net debt between minimum and maximum percentages, primarily using interest rate swaps to manage net exposure to interest rate changes related to their borrowing portfolio.

Disney efficiently converted foreign currency denominated borrowings to U.S. dollar denominated borrowings using cross-currency swaps. The company's policy required it to maintain hedge coverage between minimum and maximum percentages of forecasted foreign exchange exposures which typically did not exceed four years. The resulting gains and losses on these contracts offset changes in the U.S. dollar equivalent value of the related exposures. However, potential economic or political difficulties in a particular country could limit the capacity to hedge against currency fluctuations or repatriate revenue. (The Walt Disney Company 2020 Annual Report)

Disney aimed to use commodity derivatives to smooth out volatility of earnings and cash flows caused by commodity price changes. Commodity swap contracts were utilized in sums based on projections of certain commodity consumption levels, including fuel oil and gasoline. The company's policy restricted it to foreign currency and interest rate derivative transactions, as well as other financial tools, that were necessary to meet its objectives. There were no speculative purposes involved in the transactions or any other hedging transactions. (The Walt Disney Company 2020 Annual Report)

Disney employed a VAR model to estimate potential one-day losses in the fair value of its interest rate, foreign exchange, commodities, and market-sensitive equity financial instruments. The VAR model's calculations were based on regular market conditions at a confidence level of 95%. Various modeling techniques were applied, such as the interrelationships between various interest rates, currencies, commodities, and equity prices, using a variance/co-variance technique. These interrelationships were determined by observing movements in the relevant markets over the preceding quarter to compute VAR amounts at each fiscal quarter-end. (The Walt Disney Company 2020 Annual Report)

The model incorporated all the company's debt, interest rate and foreign exchange derivative contracts, commodities, and market-sensitive equity investments. Predicted transactions, firm commitments, and accounts payable and receivable denominated in foreign currencies were not included in the model. The VAR model was a risk analysis tool that did not pretend to represent the actual losses in fair value that the company could incur, nor did it consider the possibility of favorable changes in market factors. The combined VAR on a consolidated basis raised from $322 million at September 28, 2019, to $323 million at October 3, 2020. (The Walt Disney Company 2020 Annual Report)

Disney has grown into a global corporation since its first international venture in Tokyo. Disney started its European expansion in the 1990s, which included the establishment of a European headquarters in France. The company also expanded its European presence with the creation of Euro Disney located about twenty miles outside of Paris. Disney has replicated its global-themed parks in Hong Kong while keeping the American culture alive. This allows mainland Chinese who visit Hong Kong Disneyland to experience a sense of international travel and engages in global consumption, despite the restrictions imposed by their government. (Forman 1998) (Fung & Lee 2009)

The newly created Direct-to-Consumer and International segment is serving as a global, multiplatform media, technology, and distribution entity for content created by Disney's Studio Entertainment and Media Networks groups. This emerging division comprises Disney's worldwide media divisions, as well as Disney's direct-to-consumer operations globally, ranging from Disney-branded direct-to-consumer streaming services to an ownership share in the Hulu and ESPN+ streaming service. Disney's branded streaming service, Disney+, launched in November 2019 and is exclusively streaming the newest live-action and animated movies from Disney, Pixar, Marvel, and Lucasfilm. The service also boasts several original and exclusive series and movie programming in addition to thousands of titles from Disney's film and television libraries. (Lam 2018)

cultures perceive and consume entertainment, Disney would not have been able to achieve its current success outside of the United States. With a physical presence in 30 countries and employing more than 6,000 people on the EMEA continent alone, the company has long been committed to building local trust and affinity by delivering the best in entertainment experiences to fans and consumers. This has been achieved through its global strategy of Creativity, Innovation & International Growth, which focuses on providing local relevance and catering to the needs and preferences of customers across the world.

In order to keep up with the rapidly changing media landscape and adjust to its future growth priorities, Disney announced a strategic reorganization of its businesses into four segments in March 2018, including the newly-formed Direct-to-Consumer and International segment, the combined Parks, Experiences and Consumer Products, the Media Networks, and the Studio Entertainment. This move was aimed at creating high-quality content, technological innovation, global expansion, and direct-to-consumer distribution.

As part of its international expansion, Disney has successfully launched its streaming service, Disney+ Hotstar, in India and Indonesia. It has also shared new details for its international general entertainment content brand, Star, which was included as part of Disney+ in select markets and launched separately as Star+ in Latin America, Australia, New Zealand, and Canada. The Star service is priced at €8.99 per month or €89.90 per year in Europe and in other Star launch markets. The company is continuing to expand its streaming service in new markets worldwide.

In March 2019, Disney acquired Twenty-First Century Fox, Inc., which was subsequently renamed TFCF Corporation, and retained all the assets and liabilities not transferred to New Fox. As part of the deal, the company has perpetual rights to certain Fox brands, including Twentieth Century Fox and Fox Searchlight.

To accelerate the growth of its DTC strategy, Disney announced another strategic reorganization of its media and entertainment businesses in October 2020. The operations of the Media Networks, Studio Entertainment, and DTCI segments were reorganized into four groups, three of which are focused on developing and producing content that will be used across all traditional and DTC platforms. The remaining group is focused on distribution and commercialization activities across these platforms.

Disney launched its subscription-based DTC streaming service, Disney+, with content from Disney, Pixar, Marvel, Star Wars, and National Geographic in the US and four other countries in November 2019. Since then, it has expanded to select Western European countries, converted the Hotstar service in India to Disney+ Hotstar, launched Disney+ in additional European countries and Indonesia, and launched Disney+ in Latin America. Additional launches are planned for the Asia-Pacific region in 2021.

In summary, Walt Disney Company, especially Disneyland as a theme park, plays a crucial role in the globalization process worldwide. Its success outside of the US has been achieved through glocalised approaches that cater to the preferences of local cultures. With its strategic reorganizations and expansion of its direct-to-consumer streaming service, Disney is well-positioned to continue its growth trajectory across the world.

In today's world, globalization has interconnected economies and cultures across the globe. Each market caters to different demands, making it crucial to adopt a "glocalized" perspective that finds a balance between meeting global needs and local requirements. By doing so, businesses can achieve success. Adapting to the local culture and catering to market demands is crucial for the opening of Disneyland Shanghai to be a success. As a multinational corporation, Disney has a history of strategic reorganization and expanding its markets worldwide. The company's success can also be attributed to its ability to adapt its corporate image to appeal to different audiences. For example, Euro Disney was established with Mickey Mouse as its corporate image, making it popular among European audiences. Similarly, Hong Kong Disneyland localized its amusement park by catering to local demands and offering a unique experience to visitors. Disney's recent shift towards direct-to-consumer services, including through its successful streaming platform, Disney+, showcases the company's adaptability to changing market trends.