Mncs in Pakistan

Only available on StudyMode
  • Download(s) : 86
  • Published : April 11, 2011
Open Document
Text Preview
Globalization has accelerated in recent years, a development that has significant implications for the regulation and governance of international business, trade and investment. International business implies no fundamental shift in the underlying principles of trading or business functions but simply more cross-border transactions. In simpler terms it includes all commercial transactions ± private and governmental ± between two or more countries. Private companies undertake such transaction for profit; governments may or may not do the same in their transactions.

The world has seen a tremendous increase in the global transactions and foreign trade in recent years. The main reason behind this is that now more and more countries are getting engaged in trading with each other in order to increase their profit or sales or protecting them from being eroded by competition. The main objectives which are influencing the companies to engage in international business are expansion of sales,acquiring resources, minimizing competitive risk and diversification of sources of sales and supplies. Besides these there are other few factors like economic factors, cultural factors, technological factors, and social factors which have influence to a greater extent.


Multinational Corporation (MNC) is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation. The International Labour Organization (ILO) has defined an MNC as a corporation that has its management headquarters in one country, known as the home country, and operates in several other countries, known as host countries. The Dutch East India Company was the first multinational corporation in the world and the first company to issue stock. It was also arguably the world's first mega corporation, possessing quasi-governmental powers, including the ability to wage war, negotiate treaties, coin money, and establish colonies.

The first modern multinational corporation is generally thought to be the East India Company. Many corporations have offices, branches or manufacturing plants in different countries from where their original and main headquarters is located. Some multinational corporations are very big, with budgets that exceed some nations' GDPs. Multinational corporations can have a powerful influence in local economies, and even the world economy, and play an important role in international relations and globalization. They have the capacity to shape global trade, production, and financial transactions. Multinational corporations are viewed by many as favoring their home operations when making difficult economic decisions, but this tendency is declining as companies are forced to respond to increasing global competition. Multinational corporations are sometimes perceived as large, utilitarian enterprises with little or no regard for the social and economic well being of the countries in which they operate, but the reality of their situation is more complicated.

The w ay is long, the path is full of thorns, P eo p l e m ay cr it iciz e, But, I have to fly« from one region to another, from the Earth to the sky, to utilize my potential, to bring prosperity to everyone, I have to fly««« Don·t obstruct me, d o n ·t cr it i c iz e .

Channelise me I n right direction, And you w ill find that I can take you, through a prosperous ride. I b eli e ve , I c an f ly« ..

In the poem ¶I· stands for Multinational Companies Ashish kumar,,,Role of mnc in international affairs2005

In more recent times, multinational corporations have grown in power and visibility, but have come to be viewed more ambivalently by both governments and consumers worldwide. Indeed, multinationals today are viewed with increased suspicion given their perceived lack of concern for the economic well-being of particular geographic...
tracking img