History of Multinational Corporations - 2003 Words

The progression and evolution of international business has played an integral role in the overall development and progress of the world economy, culture, and politics. The multinational corporation was an essential part of this process and has roots as far back as the 15th and 16th centuries in Western Europe, specifically in the nations of England and Holland, during a period known as mercantilism. This was a time of unprecedented global exploration, colonization, and other imperialist ventures. Organizations such as the British East India Trading Company, promoted both global trade and the acquisition of natural resources, primarily for their home countries in areas including Africa, East Asia, and the Americas. Global trade was the†¦show more content†¦The telegraph allowed information including personal contacts, trade methods, business newspapers and magazines helped spread knowledge internationally. Whereas in the early 1800s, national tariffs and barriers to tra de led to undervaluing of exports on trade ships and even smuggling, by the late 1800s improve efficiencies made these actions unnecessary. For example, McKinley Act of 1890 is often credited by many as the main cause of the increase of FDI in the US. Furthermore, the 19th century saw unparalleled amount of migrations, which encouraged the transmission of new ideas, and encouraged the transfer of technology and international investments. MNCs communicated and developed a modern business culture together by the exchange of products, processes, information, and managerial techniques that were crucial to the developed of a globalized business world. The idea of a ‘free-standing company’ was also formed during this time. This is a company â€Å"that extends over borders but does not grow out of an existing home-based business operations.† These companies typically existed in tight groups, because without any real basic competencies, had to resort on the abilit ies of outsiders. This style of firm was common in the UK and less common in other industrialized nations, but faded away as the financial markets developed. By the 1890s to the mid-19th century the nature of international business shifted from industrialShow MoreRelatedGlobalization And Westernization1532 Words   |  7 Pagesservices to those who could otherwise not be able to obtain them. Businesses interests over the years has spurred innovation and progress. But it would be irresponsible to believe that all business is good. Over the course of history there have been myriad examples of corporations manipulating and exploiting unsuspecting consumers for monetary gain. The world has become increasingly connected and informationally literate at an unprecedented rate through the advent of the internet, subsequently, acceleratingRead MoreBenefits Of Moving Production Overseas1507 Words   |  7 Pagesproduction overseas may seem obvious, multinational companies can capitalize on the competitive advantage these countries offer in the form of inexpensive labor. However, this cost reduction can come at a high cost as different cultures may not place a high value on the safety and wellbeing of their employees as companies due in developed countries, such as the United States. Responsibility of Supply Chain It is imperative for today’s multi-national corporations to not only monitor supply channelsRead MoreThe Chicago School Of Professional Psychology Essay1342 Words   |  6 PagesProposal Luis A. Santiago-Gaetan The Chicago School of Professional Psychology Introduction to the Study For several decades, literature has suggested that multinational corporations (MCNs), transnational corporations (TNCs), and or international business companies (IBCs), are among the most powerful and wealthiest organizations in the history of the world (Tirimba Macharia, 2014; Bouquet Birkinshaw, 2008; Fuchs, 2007; Cohen, 2007; Stopford, 1998; Meleka, 1985; Hawkins, 1979). These businessRead MoreFin426, Chapter1 Testbank Questions1414 Words   |  6 PagesHistorically, the primary motive for U.S. multinationals to produce abroad has been to a. lower costs b. respond more quickly to the marketplace c. avoid trade barriers d. gain tax benefits ANSWER: b: p.8, evolution of multinational 1.2 The primary objective of the multinational corporation is to a. maximize shareholder wealth b. maximize world production c. minimize debt d. minimize the cost of doing business globally ANSWER: a: p.21, Multinational Financial Management: Theory andRead MoreInternational Hrm Staffing Policies1357 Words   |  6 PagesINTERNATIONAL BUSINESS Distinguish between Ethnocentric and Polycentric Human Resource Management policies used by Multinational Corporations, clearly outlining the advantages and disadvantages of each. ETHNOCENTRIC POLICY The ethnocentric staffing policy refers to the strategy of a multinational company to employ managers for key positions from the parent headquarters instead of employing local staff. In the ethnocentric approach, the cultural values and business practices of the homeRead MoreMultinational Organizations : A Multinational Corporation1247 Words   |  5 PagesA Multinational Corporation, also known as MNC, is a corporation that has it facilities and other assets in more than one country, in addition to its home country. These corporations operate comprehensively in more than one country by having a main office in a centralized location where they systematize global management and have offices and/or factories in different countries. Multinational Corporations may participate in numerous activities such as manufacturing, importing and exporting in differentRead MoreDavid Kortens The Physics Of Business Administration1385 Words   |  6 Pagespublished When Corporations Rule the World in 1995. When Corporations Rule the World gave readers his perspective of anti-globalization, which was a passion for David Korten. His primary idea was that business enterprises wer e manipulating the conclusion of the world s economic and social involvement from this process of globalization. His sentiment about globalization directs politics, society, and environment in a negative direction for the human involvement. Korten states that multinational corporationsRead MoreTransnational Corporation And What Impacts Do They Have On Society?1163 Words   |  5 PagesWhat is a Transnational Corporation and what impacts do they have on society? Before we can discuss the impacts these types of corporations have on society, we must first have a basic knowledge of exactly what a Transnational Corporation is and how they are formed. Then we can begin to comprehend how these corporations’ impact things such as international trade and the effects they have on cultures throughout the world. Let’s begin by defining a Transnational Corporations. Most of individualsRead MoreChallenge For The International Free Trade Era1415 Words   |  6 PagesPeru, Singapore, and Vietnam in the massive initiative named the Trans-Pacific Partnership. Now, with 4 more countries, Canada, Japan, Malaysia, and Mexico, the US is working to establish one of the biggest multilateral free-trade commitment in its history. Since the beginning of his presidency, President Obama has pushed for the Congress’ approval of the TPP, claiming that the pact’s goals are to reduce tariffs, protect consumer rights, and benefit domestic workers. (USTR, 2011) However, underneathRead MoreDomestic And Foreign Economic Policy1646 Words   |  7 Pagescomply with. The reason this is because the international organizations function like corporations and the biggest shareholders tend to have the largest vote on how they will operate. There are many different ways to influence states and trade agreements. One way to influence others is using multinational corporations because they can opportunities and not under the influence of government. Multinational corporations are able to take advantage of the weaker states when making agreements because the