multinational corporation

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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 cent. and proliferated after World War II. Typically, a multinational corporation develops new products in its native country and manufactures them abroad, often in Third World nations, thus gaining trade advantages and economies of labor and materials. Almost all the largest multinational firms are American, Japanese, or West European. Such corporations have had worldwide influence—over other business entities and even over governments, many of which have imposed controls on them. During the last two decades of the 20th cent. many smaller corporations also became multinational, some of them in developing nations. Proponents of such enterprises maintain that they create employment, create wealth, and improve technology in countries that are in dire need of such development. Critics, however, point to their inordinate political influence, their exploitation of developing nations, and the loss of jobs that results in the corporations' home countries.

multinational company

or

multinational corporation

a company which operates from a home base in one country with subsidiaries in others. The term transnational company has increasingly been preferred to describe large international corporations since they may not have an easily identifiable home base. World economy and trade is increasingly dominated by such companies which many authors see as outside the control of national governments. This raises issues of the control which such governments have over their own economies. Whilst the role of multinational companies has been decisive for the fate of THIRD WORLD economies and is central to the concept of IMPERIALISM and NEOIMPERIALISM, the largest companies have the majority of their investments in industrial countries. Investment in the Third World may not be the most important area for multinational companies, but they derive high profits from such investments and the effect on small Third World countries can be very significant. See also DEPENDENT INDUSTRIALIZATION, DEPENDENCY THEORY, UNEQUAL EXCHANGE.
References in periodicals archive ?
MANILA, Philippines The government has scrapped the preferential tax rate for employees of reqional headquarters (RHQs) and regional operating headquarters (ROHQs) of multinational companies despite the strong uproar from foreign chambers of commerce.
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The resolution of this matter clearly demonstrates the Government is taking strong action to ensure multinational companies pay their fair share of tax on the profits they earn in Australia.
Multinational Companies in China: Navigating the Eight Common Management Pitfalls
There are about 200 companies, an estimated 60 multinational companies of them, operating in the country.
The project, named "How to better integrate multinational companies in Shanghai's innovation eco-system," aims to first seek out the major concerns of multinational companies regarding to the innovation-related issues, such as IP protection, government research funding policy, then provide actionable suggestions for the government to solve these issues.
New licenses have been approved for five multinational companies in the finance, engineering and customs security sectors, who will operate under the incentive scheme of Act 41 of 2007, reports Agencia de Noticias Panama (Oct.
Multinational companies operating here consider corporate social responsibility (CSR) activities when selecting suppliers and business partners, a survey showed Wednesday.
SWABI -- Representatives of the multinational companies in a workshop on Monday warned the tobacco growers of the district to avoid the cultivation of non-recommended varieties (NRVs) of Virginia tobacco.
The number of people employed by multinational companies hit an all-time high in 2013, rising 4.

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