Advocates of multinationals say they create high-paying jobs and technologically advanced goods in countries that otherwise would not have access to such opportunities or goods. On the other hand, critics say multinationals have undue political influence over governments, exploit developing nations and create job losses in their own home countries. Generally speaking, multinational corporations will derive at least a quarter of their revenues outside their home country.
Theoretical background[ edit ] The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society.
According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in free market system where there is little government interference.
As a result, international wealth is maximized with free exchange of goods and services. They have taken the integration of national economies beyond trade and money to the internationalization of production. For Multinational enterprise in china first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies.
Economic theories of the multinational corporation include internalization theory and the eclectic paradigm. The latter is also known as the OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses.
This has a history of self-conscious cultural management going back at least to the s. Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review inwas fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated.
He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing".
However, the projected outcome of this was not the assimilation of international firms into national cultures, but the creation of a "world customer".
The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation.
It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself. In Batavia in the VOC established its overseas administrative centeras the second headquarters, with a Governor-General in charge, as the Company's de facto chief executive.
The Company also had important operations elsewhere. A transnational corporation differs from a traditional multinational corporation in that it does not identify itself with one national home.
While traditional multinational corporations are national companies with foreign subsidiaries,  transnational corporations spread out their operations in many countries to sustain high levels of local responsiveness. Charter company and Neocolonialism The history of multinational corporations is closely intertwined with the history of colonialismthe first multinational corporations being founded to undertake colonial expeditions at the behest of their European monarchical patrons.
During the 19th century, formal corporate rule over colonial holdings largely gave way to state-controlled colonies,   however corporate control over colonial economic affairs persisted in a majority of colonies.
However the economic impact of corporate colonial exploitation has proved to be lasting and far reaching,  with some commentators asserting that this impact is among the chief causes of contemporary global income inequality. Some of these critics argue that the operations of multinational corporations in the developing world take place within the broader context of neocolonialism.
Anti-globalization movement and Anti-corporate activism Anti-corporate advocates criticize multinational corporations for being without a basis in a national ethosbeing ultimately without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards.
In other words, increased mobility of multinational corporations benefit capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequalityunemploymentand wage stagnation.This is the main Vodafone Global Enterprise page that lists all the solutions we offer.
Apple is a great example of a multinational enterprise, as it tries to maximize cost advantages through foreign investments in international plants.
Largest Multinationals. A lot goes into making an iPhone: Gorilla Glass, an A6 chip, circuit boards, the accelerometer, various other components, transistors, wires, and connectors.
China's multinational corporations have steadily climbed up the global rankings in recent years, and yet most of these companies are not internationally active or . Multinational enterprises (MNEs) By serving various markets and their size, they often benefit from economies of scale and scope, and have a stronger financial capacity to invest in innovation including risky innovation projects.
Recruiting for a Multinational Enterprise in China Case Solution,Recruiting for a Multinational Enterprise in China Case Analysis, Recruiting for a Multinational Enterprise in China Case Study Solution, Global CEOs like new human resources team, who worked in Guangzhou (China) to recruit and select the 85 individuals for various positions throughout the en.