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Multinational corporation

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**Historical Overview of Multinational Corporations:**
– First multinational corporations established for colonial trade and exploration.
– Examples include British East India Company and Dutch East India Company.
– Transition from colonial charter companies to global operations.
– Mining industry’s significant role in early multinational activities.
– Evolution of multinational corporations post-World War II.
– Expansion into diverse sectors like manufacturing and oil.

**Industry Focus of Multinational Corporations:**
– Mining activities include extraction of gold, silver, copper, and oil.
– Notable companies like Rio Tinto and De Beers in the mining sector.
– Oil industry dominated by Seven Sisters before OPEC’s rise.
– Manufacturing sector expansion post-1945 into industrialized countries.
– Examples like SKF and Unilever showcasing multinational manufacturing operations.

**Legal and Tax Considerations for Multinational Corporations:**
– Options for legal domicile selection for subsidiaries.
– Popular choices like the Netherlands and Great Britain for legal advantages.
– Issues of tax avoidance versus illegal tax evasion.
– Regulation and taxation challenges faced by multinational corporations.
– Alternatives like Professional Employer Organizations for managing foreign operations.

**Operational Aspects of Multinational Corporations:**
– Definition and characteristics of multinational enterprises.
– Role of Foreign Direct Investment (FDI) in global operations.
– Impact of global trade agreements and government policies on FDI.
– Challenges related to cultural differences and government regulations.
– Criticisms faced by multinational corporations, including tax avoidance and exploitation concerns.

**Impact of Multinational Corporations on Economies and Society:**
– Job creation and technology transfer in host countries by multinational corporations.
– Influence on government policies and economic growth.
– Criticisms related to labor exploitation and environmental degradation.
– Contributions to economic development and global trade.
– Importance of understanding historical perspectives and further research on multinational corporations.

A multinational corporation (MNC) – also called a multinational enterprise (MNE), transnational enterprise (TNE), transnational corporation (TNC), international corporation, or stateless corporation, with subtle but contrasting senses – is a corporate organization that owns and controls the production of goods or services in at least one country other than its home country. Control is considered an important aspect of an MNC to distinguish it from international portfolio investment organizations, such as some international mutual funds that invest in corporations abroad simply to diversify financial risks. 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".

Most of the largest and most influential companies of the modern age are publicly traded multinational corporations, including Forbes Global 2000 companies.

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