Multinational Corporation (MNC)
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A Multinational Corporation (MNC) is a corporation that is a multinational organization (that own or control production or services facilities in one or more countries other than the home country).
- Context:
- It can (typically) have headquarters in one country (the home country) and operate in multiple foreign countries through subsidiaries, branches, or joint ventures.
- It can (often) be structured as a Parent-Subsidiary Model, where the parent corporation controls partially or fully owned subsidiaries in different countries.
- ...
- It can operate in various industries, including Technology, Finance, Healthcare, Manufacturing, and Retail.
- It can be driven by a Globalization strategy to access new markets, acquire resources, and optimize production costs.
- It can include entities known as Transnational Corporations, which have a decentralized management structure, with no clear national base.
- It can maintain production facilities, distribution centers, or service hubs in host countries to minimize costs or tap into local markets.
- It can significantly contribute to the Global Economy, with major MNCs often having revenues larger than the GDP of some countries.
- It can be subject to multiple Legal Frameworks and Regulatory Compliance requirements in the countries it operates.
- It can have a complex Supply Chain Network that spans several continents, impacting logistics and operational strategies.
- It can engage in Foreign Direct Investment (FDI) to establish or acquire assets in other countries.
- It can have global Brand Recognition and leverage marketing strategies to maintain its presence across diverse regions.
- It can range from early trading entities like the English East India Company to modern technology giants like Apple Inc. and Alphabet Inc..
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- Example(s):
- an American Multinational Corporation, such as:
- Citigroup Inc., a global financial services company operating in over 100 countries.
- Microsoft Corp., a technology firm with operations, research, and development centers in multiple countries.
- BlackRock, Inc., the world’s largest asset manager, with offices and clients in more than 30 countries.
- an Early Multinational Corporation such as:
- English East India Company, established in 1600, which was one of the earliest multinational trading companies.
- Dutch East India Company (VOC), founded in 1602, which set up trade posts across Asia, Africa, and the Middle East.
- Hudson's Bay Company, founded in 1670 in Canada, expanding fur trading operations across North America.
- a Japanese Multinational Corporation, such as:
- Toyota Motor Corporation, a global automotive leader with production facilities in over 27 countries.
- Sony Corporation, a consumer electronics and entertainment giant with operations in 40 countries.
- a European Multinational Corporation, such as:
- Nestlé S.A., a Swiss food and beverage company operating in 189 countries.
- Royal Dutch Shell, a British-Dutch multinational with extensive operations in oil and gas in over 70 countries.
- a Modern Technology Multinational, such as:
- Alphabet Inc., the parent company of Google, which operates data centers and offices globally.
- Apple Inc., with manufacturing facilities in China, research centers in India, and sales networks worldwide.
- …
- an American Multinational Corporation, such as:
- Counter-Example(s):
- a Single Nation-Based Corporation, which operates exclusively within its home country and does not engage in international operations.
- a Domestic Business, which lacks foreign investments and global operations.
- a Regional Company, which serves multiple locations but remains confined to a single region or continent.
- a State-Owned Enterprise with a focus on national operations rather than global expansion.
- See: Globalization, National Library of The Netherlands.
References
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/multinational_corporation Retrieved:2014-8-1.
- Multinational corporations (MNC) or multinational enterprises (MNE) are organizations that own or control production or services facilities in one or more countries other than the home country. [1] For example, when a corporation is registered in more than one country or has operations in more than one country, it may be attributed as MNC. Usually, it is a large corporation which both produces and sells goods or services in various countries. It can also be referred to as an international corporation or "transnational corporation". They play an important role in globalization. Arguably, the first multinational business organization was the Knights Templar, founded in 1120.[2] After that came the British East India Company in 1600 [3] and then the Dutch East India Company, founded March 20, 1602, which would become the largest company in the world for nearly 200 years. [4]
- ↑ http://www2.econ.iastate.edu/classes/econ355/choi/mul.htm
- ↑ The History Channel, Lost Worlds: Knights Templar, July 10, 2006, video documentary written and directed by Stuart Elliott.
- ↑ http://yaleglobal.yale.edu/about/globalinc.jsp "Globalinc. An Atlas of The Multinational Corporation" Medard Gabel & Henry Bruner, New York: The New Press , 2003. ISBN 1-56584-727-X
- ↑ http://www.kb.nl/dossiers/voc/voc.html VOC at the National Library of the Netherlands (in Dutch)