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A. A. Lazarus
The multinational corporation is a business organization whose activities are located in more than two countries and is the organizational form that deﬁnes foreign direct investment. This form consists of a country location where the ﬁrm is incorporated and of the establishment of branches or subsidiaries in foreign countries. Multinational companies can, obviously, vary in the extent of their multinational activities in terms of the number of countries in which they operate.
A large multinational corporation can operate in 100 countries, with hundreds of thousands of employees located outside its home country.
The economic deﬁnition emphasizes the ability of owners and their managerial agents in one country to control the operations in foreign countries. There is a frequent confusion that equates the ability to control with the ﬂow of capital across national borders. Since
Bibliography: Braudel F 1973 Capitalism and Material Life, 1400–1800 (trans. Jones G 1993 British Multinational Banking, 1830–1990. Oxford University Press, New York Suzuki Y 1991 Japanese Management Structures, 1920–1980. St. Harvard University Press, Cambridge, MA Wilkins M 1988 The free-standing company, 1870–1914: An