Multi-national Corporation

From Wikipedia, the free encyclopedia (Redirected from MNCs) Jump to: navi ation, search

A multinational corporation (MNC) or multinational enterprise (MNE)[1] is a corporation that is registered in more than one country or that has operations in more than one country. It is a large corporation which both produces and sells goods or services in various countries.[2] It can also be referred to as an international corporation. hey play an important role in globali!ation. Arguably" the first multinational business organi!ation was the #nights emplar" founded in 112$.[%][&]['] After that came the (ritish )ast India *ompany in 1+$$[+] and then the ,utch )ast India *ompany" founded -arch 2$" 1+$2" which would become the largest company in the world for nearly 2$$ years.[.]

Contents

! "trate ies # Conflict of la$s % &ransnational corporations ' Criticism of multinationals ( "ee also ) References * +,ternal links

Strategies
A corporation may choose to locate in a which is a geographical region that has economic and other laws that are more free/mar0et/oriented than a country1s typical or national laws. It could also choose a more rationali!ed decision and run with the money.

Conflict of laws
Main article: Conflict of la$s

*onflict of laws is a set of procedural rules that determines which legal system and which 2urisdiction1s applies to a given dispute. he term conflict of laws itself originates from situations where the ultimate outcome of a legal dispute depended upon which law applied" and the common law courts manner of resolving the conflict between those laws. In civil law" lawyers and legal scholars refer to conflict of laws as

private international law. 3rivate international law has no real connection with public international law" and is instead a feature of local law which varies from country to country. he three branches of conflict of laws are4

Jurisdiction - $hether the forum court has the po$er to resolve the dispute at hand Choice of la$ - the la$ $hich is .ein applied to resolve the dispute Forei n /ud ments - the a.ility to reco ni0e and enforce a /ud ment from an e,ternal forum $ithin the /urisdiction of the ad/udicatin forum1 it is sometimes a ainst overnment policies1

Transnational corporations
A transnational corporation ( 5*) differs from a traditional -5* in that it does not identify itself with one national home. 6hile traditional -5*s are national companies with foreign subsidiaries"[7] 5*s spread out their operations in many countries sustaining high levels of local responsiveness.[8] An e9ample of a 5* is 5estl: who employ senior e9ecutives from many countries and try to ma0e decisions from a global perspective rather than from one centrali!ed head;uarters.[1$]

Criticism of multinationals
Main articles: 2nti3 lo.ali0ation and 2nti3corporate activism

Anti/corporate advocates critici!e multinational corporations for entering countries that have low human rights or environmental standards.[11] hey claim that multinationals give rise to huge merged conglomerations that reduce competition and free enterprise" raise capital in host countries but e9port the profits" e9ploit countries for their natural resources" limit wor0ers1 wages" erode traditional cultures" and challenge national sovereignty.[according to whom?]