The Multinational Corporation Boom And Its Reasons

2358 Words10 Pages
In this paper the multinational corporation boom and its reasons are investigated and then the challenges which these corporations encounter will be discussed.

There are certain reasons associated with the rapid growth of multinational corporations during the last 50 years. Including but not limited to globalization, information technology & telecommunication, deregulations and worldwide market liberalization and the operation in the emerging economies and the growth opportunity in these countries.

Globalization)

Globalization is the process of international integration caused by the exchange of products, ideas and other aspects of the culture in a global scale. Scholars still disagree whether the globalization caused the inception of multinational corporations or vice versa. Although globalization is the phenomena which belongs to the modern era, the earliest samples of multinational corporations could be traced back to 17th century Dutch and English India companies. Therefore it is generally believed that multinational corporations are both a cause and a result of the globalization process. The globalization has manifested itself in the interdependence of national economies and financial markets. There are different dimensions for the growth of multinational corporations in globalization era. The economic dimension of the multinational corporation growth can be presented through the numbers; including the fact that approximately 33% of the world trade consists of
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