Multinational Companies

2. What is meant by a international corporation (MNC)? Give 2 examples of MNCs that are U.S. based, and 2 that are based elsewhere plainly operate in the U.S. Multinational Corporation is the corporation of having operations, subsidiaries, or investments in more than one countries. According to Franklin Root (1994), an MNC is a parent company that: -engages in foreign achievement through and through its affiliates located in several countries, -exercises direct control everywhere the policies of its affiliates, -implements business strategies in production, marketing, finance and staffing that transcend national boundaries (geocentric). actually large internationals have budgets that exceed those of entire countries. Multinational corporations give the gate have a powerful influence in world-wide relations and local economies. Multinational corporations play an important role in globalization; some argue that a new-fashioned form of MNC is evolving in response to globalization: the globally integrated enterprisingness. MNCs have existed since 1602, in which year the first MNC, the Dutch eastside India Company, was established.

Multinational corporations can be divided into three big groups according to the configuration of their production facilities: Horizontally integrated multinational corporations manage production establishments located in different countries to fetch the same or similar products. (example: Wall-Mart; McDonalds) Vertically integrated multinational corporations manage production establishment in certain coarse/countries to produce products that serve as input to its production establishments in other country/countries. (example: Adidas) Diversified multinational corporations manage production establishments located in different countries that are neither horizontally nor vertically nor straight, nor non-straight integrated. (example: Microsoft or Siemens A.G.) Examples for U.S. Based Multinational Companies - McDonalds is an U.S based MNC and established in 1955.... If you want to get a full essay, order it on our website: Orderessay

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