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Multinational Companies : The Global Economy

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Multinational Corporations have been seen as the drivers of the global economy. Many believe that the multinational corporation is a new phenomenon. However, multinational co-operations have existed since the seventeenth century. For example, The Dutch East Company was established in 1602. The purpose of this essay is to explore the origins and motivations for the formation of multinational corporations, the pros and cons of these entities and, the positive impact multinational corporations ultimately have on the host nation.
The earliest multinational co-operation was visible in the imperialistic and colonializing methods of Western Europe. The modern version of the multinational co-operation was seen more clearly during the industrialization period of the 19th century. Companies which were searching for valuable resources found that profitability was to be found in less developed countries. In Latin America for example, the United Fruit Corporation, an American corporation, acquired seven independent companies in Honduras. From that point, the United Fruit Corporation went on to become the largest importer of bananas to the United States controlling, 90% of the market. This historical information provides the blueprint of what we see from multinational corporations.
Multinational corporations are one of the key elements in international business. There are an estimated 300 multinational corporations around the globe. These multinational corporations also

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