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 ?
10) Thus, it is argued that these areas form discrete spaces within which an alliance can be made in order to further the purpose of corporate social responsibility, the goals of globalization and the multinational corporation, and the needs of labor.
It is then explained that Multinational Corporations face similar decisions with respect to the optimal location of research and development activities.
Another way multinational corporations increase profits is by saving money on environmental responsibility.
Multinational corporations, import-export companies, international banks and major law firms have long been attracted by the county's strategic position at the crossroads of the Americas.
Such nations demand that developing nations open up their markets to manufactured goods and protect the patents of the software and drugs made by multinational corporations.
The Globalization of Information Technology in Multinational Corporations.
2) ``We're dealing with m ultinational corporations, and you cannot bully multinational corporations.
John Carlisle, President of the Sheffield-based Organisation for Cooperation and Trust, and a leading pioneer of partnering in business contracts, highlighted the increasing power of multinational corporations over national politics.
The degree to which multinational corporations improve or deteriorate the environment in developing countries depends largely on which industry you're talking about, French says, pointing to the asbestos industry as a case in point.
At the Gap, Starbucks, McDonald's, and other streetlevel symbols of the relentless expansion of multinational corporations championed by the World Trade Organization (WTO), cash drawers began to fill with money bearing an anti-WTO symbol.
African states that refused to sell valuable mineral resources to private multinational corporations would lose access to Western markets.
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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