Multinational corporations

(noun)

A multinational corporation (MNC) is a corporate enterprise that manages production or delivers services in more than one country.

Related Terms

Examples of Multinational corporations in the following topics:

  • Multinational Corporations

    • A multinational corporation (MNC) is a business enterprise that manages production or delivers services in more than one country.
    • A multinational corporation (MNC) or multinational enterprise (MNE) is a corporate enterprise that manages production or delivers services in more than one country.
    • Multinational corporations can have a powerful influence in local economies, and even the world economy.
    • These patents often allow multinational corporations to exercise a monopoly in the local economy, preventing local enterprises from developing.
    • Because of their size, multinational corporations can also have a significant impact on government policy through the threat of market withdrawal.

  • Corporations and Corporate Power

    • Coca-Cola is an example of a multinational corporation, with interests and markets all around the world.
    • A multinational corporation (MNC) is a corporation that either manages production or delivers services in more than one country .
    • Some multinational corporations are very large, with revenues that exceed some nation's national revenues.
    • Multinational corporations can have a powerful influence on both local economies and the world economy.
    • Multinational corporations are important factors in the processes of globalization .

  • Multinational Firms

    • A multinational corporation (MNC) or multinational enterprise (MNE) is a corporation registered in more than one country or has operations in more than one country.
    • It can also be referred to as an international corporation.
    • The first multinational corporation was the Dutch East India Company, founded March 20, 1602.
    • Corporations may make a foreign direct investment.
    • Multinational corporations are important factors in the processes of globalization.

  • Considerations when Managing a Global Corporation

    • As multinational corporations grow in both size and quantity, the inherent managerial implications of a fully globalized economy demonstrate higher levels of relevance and importance within global corporations.
    • Through identifying the necessary global skill set and effectively implementing these global managers within the business structure, multinational corporations can attain competitive advantage through cross-cultural knowledge.
    • Once managers attain the appropriate levels of cultural intelligence, it becomes necessary to apply this to the corporate framework.
    • The figure (see ) highlights the remarkable growth rates in developing economies such as China, but fails to note the human rights and legal complications for multinationals in approaching these markets in an ethical manner.
    • With theories, such as globality underlining the trajectory of global inter-dependency, this opportunity is a necessary consideration to any multinational corporation hoping to remain a competitor in a fully globalized economy.

  • Expanding into Foreign Countries

    • A multinational corporation is a company incorporates itself in one country and operates in one or more foreign countries.For example, British Petroleum, General Electric, Toshiba, and Wal-Mart are multinational corporations with extensive business activities that span across the globe.Sometimes financial analysts use the term, multinational enterprise because a government could form a joint venture with a corporation, and the definition of an enterprise implies a broader meaning.
    • A multinational enterprise's goal is to earn profits.Therefore, they enter the international markets and foreign countries in the pursuit of profits.Every international enterprise has a choice.It could export to another country or relocate production outside their home country.For instance, many U.S. corporations relocated manufacturing outside the United States, althoughthe U.S. suffers from a high unemployment rate since the beginning of the Great Recession.
    • Financial analysts and economists divide the world's markets into mature economies and emerging markets.Mature economies are competitive, and a company entering this market would face narrow profit margins.Some examples include the United States and Europe.On the other hand, the emerging-market economies are countries that recently opened their markets to international trade and finance.They can be very profitable but entail greater risk.For example,China, India, and Mexico are removing their government controls of their markets, and they allow international investors and corporations to invest in their economies.
    • Thus, companies can develop new products and services, and compete with other companies.Furthermore, a multinational enterprise could tailor its goods and services toaccommodate different cultures and tastes.Finally, multinational corporations need access to capital because international activities require financing.Hence, a country must allow the free movement of money, and corporations are free to issue more stock, bonds, or receive bank loans without government interference.Consequently, a firm has twelve reasons to relocate production to another country, rather than to export.
    • Reason 5: A business gains access to new markets and more consumers.For instance, the Coca-Cola Corporation produces and sells its carbonated soda products in most countries around the world, boosting its consumers.

  • Corporate Social Responsibility

    • Corporations are fictitious, corporations are juridical persons created by law.
    • Corporate ethics is the ethics of corporate social responsibility (CSR), not corporate personal responsibility.
    • The multinational corporation is here to stay; the issues of how these behemoths are guided and controlled is far from settled.
    • How the humans who work and manage these organizations maintain their own integrity within the Utilitarian cultures of the multinational corporation is a chapter of history we are only beginning to write.
    • The Social Contract between society and the multinational corporation today is being radically renegotiated.

  • Definition and Challenges of a Global Corporation

    • Global corporations operate in two or more countries and face many challenges in their quest to capture value in the global market.
    • A global company is generally referred to as a multinational corporation (MNC).
    • Organizational Structure: Another significant hurdle is the ability to efficiently and effectively incorporate new regions within the value chain and corporate structure.
    • Finding a way to capture value despite this fixed organizational investment is an important initiative for global corporations.
    • Identify the most meaningful challenges encountered by multinational corporations (MNCs) when pursuing global markets and efficiencies

  • Summary and references

    • Carroll, Archie. " A Three Dimensional Conceptual Model of Corporate Social Performance. " Academy of
    • "Corporate Social Responsibility: Will Industry Respond to Cut-Backs in Social Program Funding?
    • "Corporate Scandal Shakes India. " Wall Street Journal, A-1, 2009.
    • Multinational Finance provides a concise treatment of the investment and financial decisions facing the multinational corporation.
    • It also has unique chapters on multinational treasury management, options on real assets, corporate governance, asset pricing, and international portfolio management.

  • Culture-Specific Nuances of Human Resources Management

    • The localization of HRM strategies and materials allows multinationals to achieve synergy across various geographic and cultural contexts.
    • This question is absolutely critical to international success, and tends to be precisely where multinational companies who don't succeed trip up.
    • These differences cannot be ignored, and companies who do not alter their corporate culture to adhere to their local climate will inadvertently falter.
    • Recruitment for international projects requires HR to make a decision between hiring an expatriate from the home country of corporate HQ or hiring locally.
    • A few guidelines to keep in mind for multinationals include the following:

  • Corporate Social Responsibility and sustainable development defined

    • Carroll's CSR model contains four categories of corporate responsibility organized from most to least important.
    • The successful multinational enterprises of the coming century will be those that find the unique balance between financial objectives and CSR.
    • ILO (International Labor Organization) and its Tripartite Declaration focuses on the "social aspects of the activities of multinational enterprises, including employment creation in the developing countries" (Governing Body of International Labor Office, 204th session).
    • How important is Corporate Social Responsibility (CSR) as a core value for the top companies in the world?
    • Carroll's CSR Pyramid: A three-dimensional conceptual model of corporate social performance.