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


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 ?
Costco Wholesale Corporation, trading as Costco, is a US multinational firm that operates a chain of warehouse clubs.
Multinational firm Cargill of the United States (US) is now eyeing bigger production of animal nutrition premix solutions to meet the increasing demand from medium and large livestock farms and feed millers in the Philippines and other Southeast Asian (SEA) countries.
The buyer is an undisclosed multinational firm made this strategic acquisition at almost twice the industry standard valuation multiple, at 8.
Horizontal FDI is taken, when the multinational firm produces same products in multiple countries.
Under the complex integration strategy, any subsidiary operating in any territory can perform for the whole multinational firm.
introduces six theoretical approaches to the multinational firm, analyzing the dominating multinational, the knowing multinational, and the coordinating multinational from an economic perspective, and framing the multinational firm as an organization, a business network, and a political actor.
Following previous studies, subsidiary experience was measured by the number of years that a subsidiary of a multinational firm has been operating in China (Erramilli 1991, Luo/Peng 1999, Makino/Delios 1996).
This suggests that the residual tax on foreign multinational firm earnings biases capital flows to low corporate tax countries toward FPI.
The entire collection was on loan from the multinational firm and faced being packed up and recalled for possible display in its archive in Port Sunlight.
First, infrastructure can have both direct effects on multinational and intermediate firms by lowering the fixed costs of production as well as indirect effects on multinational firm marginal costs through agglomeration in intermediate goods markets.
This approach affords the prospect of comparing the financing decisions of affiliates of the same multinational firm operating in different institutional settings.
The same may be true of the relationship between a multinational firm and labor unions.

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