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 ?
Remember when we used to talk about multinational corporations, and people would roll their eyes?
Multinational corporations should experiment with different mixes of partnerships and branches to determine which structure best maximizes the use of FTCs generated.
African states that refused to sell valuable mineral resources to private multinational corporations would lose access to Western markets.
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Because of the importance of the treaties to multinational corporations, Tax Executives Institute urges the Committee on Foreign Relations to recommend ratification by the full Senate.
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Multinational Corporations and Organization Theory: Post Millennium Perspectives
Allianz today launched Allianz Global Benefits, a new unit to globally provide employee benefit solutions which address the needs of multinational corporations.
compile 20 chapters on how multinational corporations can help reduce poverty and how this can in turn benefit these corporations.
From Italy to Poland, legal counsel for multinational corporations will now have immediate access to legal information that can be critically important to their company's efforts in corporate compliance and governance.
Archbishop Andrew Hutchison, primate of the Anglican Church of Canada, said Anglicans must attempt to "have a balance" when dealing with the issue of Israeli-Arab conflict in the Middle East, even as some denominations are reviewing their investment policies with regards to multinational corporations doing business in Israel.

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