What is meant by a multinational corporation (MNC)? Give 2 examples of MNCs that are U. S. based, and 2 that are based elsewhere but 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 production through its affiliates located in several countries,
- exercises direct control over the policies of its affiliates,
- implements business strategies in production, marketing, finance and
- staffing that transcend national boundaries (geocentric).Very large multinationals have budgets that exceed those of entire countries.
Multinational corporations can have a powerful influence in international relations and local economies. Multinational corporations play an important role in globalization; some argue that a new form of MNC is evolving in response to globalization: the 'globally integrated enterprise'. MNCs
...have existed since 1602, in which year the first MNC, the Dutch East India Company, was established.
Multinational corporations can be divided into three broad groups according to the configuration of their production facilities: Horizontally integrated multinational corporations manage production establishments located in different countries to produce the same or similar products. (example: Wall-Mart; McDonald's) Vertically integrated multinational corporations manage production establishment in certain country/countries to produce products that serve as input to its production establishments in other country/countries.
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 - McDonald’s is an U. S based MNC and established in 1955. McDonald’s is the leading global foodservice retailer with more tha
30,000 local restaurants serving 52 million people in more than 100 countries each day.More than 70% of McDonald's restaurants worldwide are owned and operated by independent local men and women.
Coca Cola is an U. S based MNC and established in 1886. Coca Cola owns 4 of the top 5 nonalcoholic sparkling beverage brands. It operates more than 200 countries and associates 90,500 worldwide. Coca Cola’s beverage variety is more than 2800 products.
Examples for Multinational Companies Not U. S Based but operates in U. S. - Shell is established in 1833 in Britain. It is a global group of energy and petrochemicals companies.With 104,000 employees in more than 110 countries, they play a key role in helping to meet the world’s growing demand for energy in economically, environmentally and socially responsible ways.
Sony is a multinational conglomerate corporation headquartered in Minato, Tokyo, Japan, and one of the world's largest media conglomerates with revenue exceeding US$88. 7 billion (as of 2008). [1] Sony is one of the leading manufacturers of electronics, video, communications, video game consoles and information technology products for the consumer and professional markets. Its name is derived from Sonus, the Greek goddess of sound.
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