MULTINATIONAL CORPORATIONS: Essay

English_Master March 18, 2016 No Comments
MULTINATIONAL CORPORATIONS  Multinational Corporations or Transnational Corporations are very large firms with headquarters in one country but with several subsidiaries or centers distributed in various countries of the world. Such companies were in existence for a long time. The English East India Company and British South Africa Company were two such companies, associated with old fashioned colonialism. Most of the former colonies of the erstwhile imperial powers gave way to independent states. At the same time the United States of America rose as the foremost industrial power in the world. Naturally, the giant corporations of US grew, beyond its borders, much quicker than those of other countries. The UK, France and Germany along with other European and Asian countries, including India, too have their multinationals. However, the US based ones outnumber others. All of the MNCs have tremendous clout, and they can raise capital easily to invest in other countries. The MNCs invest in developing countries not motivated by humanitarian considerations but with the aim of maximizing their profit. They find lower labour cost and lower social and environmental costs in the poor countries attractive. Among such countries wherever the government policy allows the repatriation of money easily, they are likely to invest liberally. Recently, after the liberalization of...
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