Emergence of Mncs the Rise of Fordism
Name: Ginu Abraham
Registration Number: H00124734
Course: INTERNATIONAL BUSINESS
Coursework type: ESSAY
Course Tutor: Dr.UmmeSalma
HOW CAN THE EMERGENCE OF MNCs BE BEST EXPLAINED?
Multi-National Corporations are corporations which have their head office in one country which is called the host country or the home country from where it manages their operations all over the world. Normally any corporation or group which derives the quarter of their income from their operations outside the host country is considered a multinational corporation. There are mainly four categories of Multi-National Corporations (1) a multinational, decentralized corporation with strong home country presence, (2) a global, centralized corporation that acquires cost advantages through centralized production wherever cheaper resources are available (3) an international company that builds on the parent corporation's technology or R&D (4) a transitional enterprise that combines the previous three approaches . As according to the UN data about 35000 companies have direct investment in foreign countries, and the largest 100 of them control about 40 percent of world trade. (Anon., 2012) The birth of MNC's started from the early days of transitional trade started by Mesopotamian, Phoenician and Greek merchants. As the result of fall of Roman Empire the trade among various nations became difficult. The feudalism in Middle East and Europe resulted in wars among feudal lords and church prohibited the trade with the Muslim nations. After years the trade was established by traders of Italy who are considered as the predecessors of present day Multi-National Corporations. In the mid of seventeenth and eighteenth century Multinational corporations in the form of trading companies started. The East India Company, the French Levant Company, the
Registration Number: H00124734
Course: INTERNATIONAL BUSINESS
Coursework type: ESSAY
Course Tutor: Dr.UmmeSalma
HOW CAN THE EMERGENCE OF MNCs BE BEST EXPLAINED?
Multi-National Corporations are corporations which have their head office in one country which is called the host country or the home country from where it manages their operations all over the world. Normally any corporation or group which derives the quarter of their income from their operations outside the host country is considered a multinational corporation. There are mainly four categories of Multi-National Corporations (1) a multinational, decentralized corporation with strong home country presence, (2) a global, centralized corporation that acquires cost advantages through centralized production wherever cheaper resources are available (3) an international company that builds on the parent corporation's technology or R&D (4) a transitional enterprise that combines the previous three approaches . As according to the UN data about 35000 companies have direct investment in foreign countries, and the largest 100 of them control about 40 percent of world trade. (Anon., 2012) The birth of MNC's started from the early days of transitional trade started by Mesopotamian, Phoenician and Greek merchants. As the result of fall of Roman Empire the trade among various nations became difficult. The feudalism in Middle East and Europe resulted in wars among feudal lords and church prohibited the trade with the Muslim nations. After years the trade was established by traders of Italy who are considered as the predecessors of present day Multi-National Corporations. In the mid of seventeenth and eighteenth century Multinational corporations in the form of trading companies started. The East India Company, the French Levant Company, the