Multinationals Corporations
Introduction.
Multinational corporations (MNC’s) also known as International Corporation, transnational corporation, global corporation and many more. Due to the political changes that have occurred during the years, the opportunities for multinationals corporations have increased considerably. As a fact multinationals corporations are growing with rapidity. For example in Mauritius we have KFC, Mac Donald’s, Pizza hut which are all multinationals and have branches throughout the island.
According to the United Nations a multinational corporation is "an enterprise which owns or controls production or service facilities outside the country in which it is based". In the words of W H Moreland, "Multinational Corporations or Companies are those enterprises whose management, ownership and controls are spread in more than one foreign country".
Thus a multinational company carries on business operations in two or more countries. Its headquarters are located in one country (home country) but its activities are spread over in other countries (host countries). MNC's may engage in various activities like exporting, importing, manufacturing in different countries. It may also lend its patents, licences and managerial services to firms in host countries
As the word itself indicated multinationals corporations have more than one dimension and despite knowing this fact no one was able to come up with an exact definition of Multinationals Corporation. Eventually the question that arises is what exactly a multinational corporation is.?
Definitions of multinationals corporations (MNC’S)
As mentioned earlier there is no specific definition for MNC’S. Different definitions are obtained from different sources. Below are some of those definitions and its sources. (1) From an ILO report.
“The essential nature of the multinational enterprises lies in the fact that its managerial headquarters are located in one country while the enterprise carries out operations in a number of
Multinational corporations (MNC’s) also known as International Corporation, transnational corporation, global corporation and many more. Due to the political changes that have occurred during the years, the opportunities for multinationals corporations have increased considerably. As a fact multinationals corporations are growing with rapidity. For example in Mauritius we have KFC, Mac Donald’s, Pizza hut which are all multinationals and have branches throughout the island.
According to the United Nations a multinational corporation is "an enterprise which owns or controls production or service facilities outside the country in which it is based". In the words of W H Moreland, "Multinational Corporations or Companies are those enterprises whose management, ownership and controls are spread in more than one foreign country".
Thus a multinational company carries on business operations in two or more countries. Its headquarters are located in one country (home country) but its activities are spread over in other countries (host countries). MNC's may engage in various activities like exporting, importing, manufacturing in different countries. It may also lend its patents, licences and managerial services to firms in host countries
As the word itself indicated multinationals corporations have more than one dimension and despite knowing this fact no one was able to come up with an exact definition of Multinationals Corporation. Eventually the question that arises is what exactly a multinational corporation is.?
Definitions of multinationals corporations (MNC’S)
As mentioned earlier there is no specific definition for MNC’S. Different definitions are obtained from different sources. Below are some of those definitions and its sources. (1) From an ILO report.
“The essential nature of the multinational enterprises lies in the fact that its managerial headquarters are located in one country while the enterprise carries out operations in a number of