A multinational corporation (MNC) or worldwide enterprise  is a corporate organization which owns or controls production of goods or services in at least one country other than its home country. Black's Law Dictionary suggests that a company or group should be considered a multinational corporation if it derives 25% or more of its revenue from out-of-home-country operations. A multinational corporation can also be referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation, or a stateless corporation. There are subtle but real differences between these three labels, as well as multinational corporation and worldwide enterprise.
Most of the largest and most influential companies of the modern age are publicly traded multinational corporations, including Forbes Global 2000 companies. Multinational corporations are subject to criticisms for lacking ethical standards, and that this shows up in how they evade ethical laws and leverage their own business agenda with capital, and even the military backing of their own wealthy host nation-states. They have also become associated with multinational tax havens and base erosion and profit shifting tax avoidance activities.
A multinational corporation (MNC) is usually a large corporation incorporated in one country which produces or sells goods or services in various countries. The two main characteristics of MNCs are their large size and the fact that their worldwide activities are centrally controlled by the parent companies.
MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial know-how globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries, and gain access to special R&D capabilities residing in advanced foreign countries.
The problem of moral and legal constraints upon the behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that emerged during the late twentieth century.
Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week, the conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management, and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations we are some quarter century into an era of stateless corporations - corporations which meet the realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries.
One of the first multinational business organizations, the East India Company, was established in 1601. After the East India Company, came the Dutch East India Company, founded March 20, 1603, which would become the largest company in the world for nearly 200 years.
The main characteristics of multinational companies are:
Multinational corporations can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile; The Economist suggests that the Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States.
Multinational corporations may be subject to the laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control".
For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements.
Disputes between corporations in different nations is often handled through international arbitration.
The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services.
To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to the internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies.
International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm. The latter is also known as the OLI framework.
The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example:
Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963, was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that "cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but the creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself.
A transnational corporation differs from a traditional multinational corporation in that it does not identify itself with one national home. While traditional multinational corporations are national companies with foreign subsidiaries, transnational corporations spread out their operations in many countries to sustain high levels of local responsiveness.
An example of a transnational corporation is Nestlé, who employ senior executives from many countries and tries to make decisions from a global perspective rather than from one centralized headquarters.
"Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as the firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs.
The history of multinational corporations is closely intertwined with the history of colonialism, the first multinational corporations being founded to undertake colonial expeditions at the behest of their European monarchical patrons. Prior to the era of New Imperialism, a majority European colonies not held by the Spanish and Portuguese crowns were administered by chartered multinational corporations. Examples of such corporations include the British East India Company, the Swedish Africa Company, and the Hudson's Bay Company. These early corporations facilitated colonialism by engaging in international trade and exploration, and creating colonial trading posts. Many of these corporations, such as the South Australia Company and the Virginia Company, played a direct role in formal colonization by creating and maintaining settler colonies. Without exception these early corporations created differential economic outcomes between their home country and their colonies via a process of exploiting colonial resources and labour, and investing the resultant profits and net gain in the home country. The end result of this process was the enrichment of the colonizer and the impoverishment of the colonized. Some multinational corporations, such as the Royal African Company, were also responsible for the logistical component of the Atlantic slave trade, maintaining the ships and ports required for this vast enterprise. During the 19th century, formal corporate rule over colonial holdings largely gave way to state-controlled colonies, however corporate control over colonial economic affairs persisted in a majority of colonies.
During the process of decolonization, the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company, dissolving in 1972. However the economic impact of corporate colonial exploitation has proved to be lasting and far reaching, with some commentators asserting that this impact is among the chief causes of contemporary global income inequality.
Contemporary critics of multinational corporations have charged that some present day multinational corporations follow the pattern of exploitation and differential wealth distribution established by the now defunct colonial charter corporations, particularly with regards to corporations based in the developed world that operate resource extraction enterprises in the developing world, such as Royal Dutch Shell, and Barrick Gold. Some of these critics argue that the operations of multinational corporations in the developing world take place within the broader context of neocolonialism.
However, multinational corporations from emerging markets are playing an ever-greater role, increasingly impacting the global economy.
Anti-corporate advocates criticize multinational corporations for being without a basis in a national ethos, being ultimately without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards. In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefit capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality, unemployment, and wage stagnation.
The aggressive use of tax avoidance schemes, and multinational tax havens, allows multinational corporations to gain competitive advantages over small and medium-sized enterprises. Organizations such as the Tax Justice Network criticize governments for allowing multinational organizations to escape tax, particularly by using base erosion and profit shifting (BEPS) tax tools, since less money can be spent for public services.
Murray Sayle: "The Netherlands United East Indies Company (Verenigde Oostindische Compagnie, or VOC), founded in 1602, was the world's first multinational, joint-stock, limited liability corporation – as well as its first government-backed trading cartel. Our own East India Company, founded in 1600, remained a coffee-house clique until 1657, when it, too, began selling shares, not in individual voyages, but in the Company itself, by which time its Dutch rival was by far the biggest commercial enterprise the world had known."
John Hagel & John Seely Brown (2013): "[...] In 1602, the Dutch East India Company was formed. It was a new type of institution: the first multinational company, and the first to issue public stock. These innovations allowed a single company to mobilize financial resources from a large number of investors and create ventures at a scale that had previously only been possible for monarchs."CS1 maint: Multiple names: authors list (link)
ASICS (アシックス, Ashikkusu) (stylized in all lowercase and italicized) is a Japanese multinational corporation which produces footwear and sports equipment designed for a wide range of sports, generally in the upper price range. The name is an acronym for the Latin phrase anima sana in corpore sano, which translates as "Healthy soul in a healthy body". In recent years their running shoes have often been ranked among the top performance footwear in the market.On September 7th, 2018, ASICS has become an International Paralympic Committee official supplier. This agreement will be valid through to 2020 to benefit the Paralympic Movement.Anritsu
Anritsu Corporation (アンリツ株式会社, Anritsu Kabushiki-gaisha) is a Japanese multinational corporation in the telecommunications electronics equipment market. A global pioneer for producing the world's first wireless telephone network, Anritsu's revenue numbers near US$782 million.Banana Republic
Banana Republic is an American clothing and accessories retailer owned by the American multinational corporation Gap Inc.
It was founded in 1978, by Mel and Patricia Ziegler with the name "Banana Republic Travel & Safari Clothing Company", with a safari theme; in 1983, Gap purchased the company, changed the name to simply "Banana Republic", and gave it a more upscale image. In late 2016, the brand announced Olivia Palermo as its first women's global style ambassador.Bill Bowerman (sculpture)
Bill Bowerman is an outdoor 2000 sculpture of the American track and field coach of the same name by Diana Lee Jackson, installed outside the Bowerman Family Building, in the corner of Hayward Field, on the University of Oregon campus in Eugene, Oregon, in the United States.Bowerman co-founded the American multinational corporation Nike, Inc.; Jackson was a Nike employee. The statue was installed on June 21, 2000.DXC Technology
DXC Technology is an American multinational corporation that provides B2B IT services.Dow Corning
Dow Corning was an American multinational corporation headquartered in Midland, Michigan, United States. Originally established as a joint venture between the Dow Chemical Company and Corning Incorporated, it is now owned by DowDuPont and specializes in silicone and silicon-based technology, and is the largest silicone product producer in the world.Gumstix
Gumstix is an American multinational corporation headquartered in Redwood City, California. It develops and manufactures small system boards comparable in size to a stick of gum. In 2003, when it was first fully functional, it used ARM architecture System on a chip (SoC) and an Operating System based on Linux 2.6 kernel. It has an online tool called Geppetto that allows users to design their own boards. In August 2013 it started a crowd-funding service to allow a group of users that want to get a custom design manufactured to share the setup costs.Hurley International
Hurley is an American multinational corporation that is engaged in the design, development, manufacturing, worldwide marketing and selling of surf apparel and accessories. The company's headquarters is in Costa Mesa, California. Since 2002, Hurley has been owned by Nike, Inc.JXTG Holdings
JXTG Holdings (JXTGホールディングス株式会社) is a Japanese petroleum and metals conglomerate headquartered in Tokyo, Japan. In 2012 the multinational corporation consisted of 24,691 employees worldwide and, as of March 2013, JX Holdings was the forty third largest company in the world by revenue. Since April 2017, JX Holdings and TonenGeneral Group integrated their businesses into the JXTG Group.Korg
Korg Inc. (株式会社コルグ, Kabushiki-gaisha Korugu), founded as Keio Electronic Laboratories, is a Japanese multinational corporation that manufactures electronic musical instruments, audio processors and guitar pedals, recording equipment, and electronic tuners. Under the Vox brand name, they also manufacture guitar amplifiers and electric guitars.National Oilwell Varco
National Oilwell Varco (NOV) is an American multinational corporation based in Houston, Texas. It is a leading worldwide provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The company conducts operations in more than 600 locations across six continents, operating through three reporting segments: Rig Technologies, Wellbore Technologies, and Completion & Production Solutions.Nippon Ham
NH Foods Ltd. (日本ハム株式会社, Nippon Hamu Kabushiki-gaisha) (English name before 2014: Nippon Meat Packers, Inc.) is a food processing conglomerate headquartered in Hommachi, Chūō-ku, Osaka, Japan. Founded in 1949, the company is commonly known as Nippon Ham. As a multinational corporation, Nippon Ham operates subsidiaries around the world, including China and the United States. In addition to its main business of meat packing and other food processing, the company owns the Hokkaido Nippon-Ham Fighters, a professional baseball team in Japan's Pacific League, and owns part of the J-League soccer team, Cerezo Osaka.Old Navy
Old Navy is an American clothing and accessories retailing company owned by American multinational corporation Gap Inc. It has corporate operations in the Mission Bay neighborhood of San Francisco. The largest of the Old Navy stores are its flagship stores, located in New York City, Seattle, Chicago, San Francisco, and Mexico City.Oscorp
Oscorp, also known as Oscorp Industries, is a multibillion-dollar multinational corporation appearing in American comic books published by Marvel Comics, predominantly Spider-Man comics. According to Forbes, highlighting the 25 largest fictional companies, it had an estimated sales of $3.1 billion, ranking it at number 23. The word Oscorp is a portmanteau of the words "Osborn" (the surname of Norman) and "corporation".Outline of Microsoft
Microsoft Corporation is a multinational corporation based in Redmond, Washington, USA and founded by Bill Gates and Paul Allen that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing. Due to the scope and size of the company, it encompasses a broad range of topics mostly revolving around critical analysis and the company's products and services.Pond's
Pond's is a brand of beauty and health care products, currently owned by parent company the multinational corporation Unilever.QVC Germany
QVC Germany is a branch of QVC, a multinational corporation specialising in televised home shopping. It was founded in 1986 by Joseph Segel in West Chester, Pennsylvania. QVC broadcasts in four major countries to 141 million consumers. The name is an initialism—standing for "Quality, Value, Convenience".
With a market share of 50%, QVC is one of the 10 largest mail-order companies in Germany.
QVC is spread over four locations: Düsseldorf in Hafen, with the administration, purchasing and studio; Hückelhoven with the distribution center, Kassel and Bochum with the QVC call center.Westpoint Slough
Westpoint Slough is the largest of several sloughs feeding into Redwood Creek in San Mateo County, California, United States. This slough is surrounded by extensive undisturbed marshlands including Greco Island, which forms its northern boundary. The channel of Westpoint Slough contains considerable mudflat areas; moreover, both the marshes and mudflats offer considerable habitat area for local and migratory wildlife, especially birds.
Multinational corporation Cargill currently owns 1,436 acres (2.2 sq mi) of salt ponds adjacent to part of Westpoint Slough. Cargill, in conjunction with Arizona-based DMB Associates, has proposed a highly controversial development of 32,000 people and 12,000 houses on this open space.
Pacific Shores Center sits along Westpoint Slough, as does Westpoint Harbor, which is open to the public. The Port of Redwood City, the City of Redwood City, and the Water Emergency Transit Authority are proposing to construct a commuter ferry terminal along the slough.
Economic, financial and business history of the Netherlands
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