What are Multinational Corporations?
A multinational corporation can be defined as a globally integrated production system, wherein a parent corporation based in a specific country exercises ownership and control. This parent corporation is predominantly managed by individuals who are nationals of the country where it is domiciled. The multinational corporation consists of several affiliated firms that are connected through shared functions and operate on a global scale, even in diverse environments.
One distinguishing feature of multinational corporations is their broad ownership structure and the implementation of a unified management strategy across their global operations. These corporations play a significant role in shaping the world’s output and international trade. Notably, a substantial number of top companies listed in Fortune Magazine are multinational corporations, underscoring their immense influence on the global economy.
Table of Content
- Stages and Forms of Multinational Corporations
- Reasons for the Growth of Multinationals
- Criticism of Multinational Corporations