Multinational Corporations

Multinational Corporation - business enterprise with manufacturing, sales, or service subsidiaries in one or more foreign countries, also known as a transnational or international corporation. These corporations originated early in the 20th century and proliferated after World War II.

To be qualified as a multinational company (MNC), two criterions need to be fulfilled. Firstly, it needs to have substantial direct investments in foreign countries. Secondly, these international operations need to be actively managed (Bartlett, Beamish, 2014). Since

As an illustration, maintaining domestic equity status and raising global capital are the core aspects for MNEs to retain sufficient cash flows, merger and acquisitions, forming strategic alliances and other business activities to achieve their long term goals. In order to reach these goals, MNEs need to implement necessary steps which include to examine market segmentation, forming strategic alliance, issuing stocks and bonds to raise relevant capital and conduct other meaningful strategies to support their financial outlooks accordingly.

The World Investment Report of 2009, published by the UNCTAD (United Nations Conference on Trade and Development), states there is a total of 889,416 multinational companies (MNCs) around the world: 82,053 parent corporations and 807,363 affiliates.

I partially agree with this thesis. Just because MNCs are capable of changing a country, they have no obligation to do so. It is not their moral responsibility to do so either. Although they should support just background institutions, they do not have to.

Multinational companies operate in more than one country outside of its originating country. Due to the vast sizes of most MNC local communities are developed by the creation of jobs and increasing community wealth. The growth strategy of MNC have positive and negative effects on the host countries economy via the reduction in market and production costs and increasing technology and efficiency. The largest down fall is from the competitor stand point as most MNC will put surrounding store owners out of business. Wal-Mart is currently if not the world largest MNC and throughout this discussion I will critically discuss the cost and benefits likely to have occurred as a result of its takeover of Asda.

MNC’s/TNC’s are companies that locate their factories in various places throughout the world. This gives countries more jobs, access to the global market, cheap manufacturing and large profits.

The Multinational Corporation (MNC) manager must have a broader set of skills than a manager of a smaller business. The MNC manager should be extremely flexible, able to speak another language, and be culturally

Growth of TNCs is down to geographical flexibility and being able to shift resources and production between locations on a global scale in order to maximise profit margins. For example, Coca Cola Hellenic is leaving Greece; this is so that they don’t lose any more money than they already have done. Athens stock exchange is a lot smaller than it used to be, which has meant the general economic “sickness” in the country depresses prices of all companies there. So, the company is to move its domicile from Greece to Switzerland and the stock listing from Athens to London. This example perfectly summarises how and why TNCs pack up in certain countries and go on to the next - to make profit, which is what all-multinational companies are out to do, “make a buck.” The growth in TNCs is also the idea of shifting to a more flexible production system, like “JIT” production, which stands for Just-In-Time. This type of production is exactly what it says on the tin, an order is placed with the company and only then do they start making the product, this saves time, space and money, as products are not left in warehouses until an order is placed. This allows for products to be made quickly and efficiently.

There are so many ways to evaluate the role of TNCs, and how they shape and contribute to the economy. Before all this one must understand what globalization is and why it is very important to TNCs. Globalization is simply the integration of culture, trade, natural resources and factors of production between nations. But, economic globalization refers to increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, services, technology and capital (Shangquan, 2000). The main key players are transnational corporations (TNC) sometimes known as multinational corporations (MNC).TNC’s are firms that have attained the power needed to co-ordinate and operate across the boundaries of many nations. Usually the main purpose of TNCs is to maximize profit and increase their selling market. This is why many TNCs are interested in globalization because without an effective and free trade global economy, many (if not all) will not be able to function and be successful. Some economist feel differently about how TNC’s

The global economy has not always been driven by large corporations. In fact, the idea and product of these globalized giants were not truly prevalent until just over a hundred years ago. In the first year of the 20th century works were under way to create a business firm that was so large it would become the world’s first large corporation. J.P. Morgan and a group of companies in the steel industry developed and created the U.S. Steel Corporation. The company would go on to become America’s first billion-dollar organization due to being built around nearly all major producers of steel, iron, and coke at the time. A near monopoly on the industry had effectively been developed and created. While this institution was private not all

When a company decides that it is time for it to grow from a national into a multinational company (MNC) there are cost and benefits involved. A multinational corporation is a company that has productive assets, which they own and control in countries other than their own. An MNC is unlike an enterprise, which exports products and services, but the MNC directly invests into developing countries, where it can benefit from producing products at a lower cost, while increasing its market share. Whether this has a positive or a negative impact for the company and its host state, is dependent on the

After that came the British East India Organization in 1600 and afterward the Dutch East India Organization, established Walk 20, 1602, which might turn into the biggest organization on the planet for almost 200 years.

A multinational corporation (MNC) is a corporation that operating in two or more countries, known as host countries but managed from one country, known as home country. Multinational Corporation is also known as international corporation (Wikipedia, 2011). Besides that, MNC can be defined as a corporation that derives revenues from operations in countries other than home country (BusinessDictionary, 2011).

Emerging market multinationals are companies with operation bases in at least one other country from their home bases (West, 2015). They have varied ownership models with the national or local governments often being part owners of the company as in the case of resource or energy companies. Family or private ownership is also a popular ownership model. They are also multi industrial in nature with the company operating multiple sectors in the home country and internationalizing in only one or two of these (West, 2015).