multinational company

multinational corporation

a company which operates from a home base in one country with subsidiaries in others. The term transnational company has increasingly been preferred to describe large international corporations since they may not have an easily identifiable home base. World economy and trade is increasingly dominated by such companies which many authors see as outside the control of national governments. This raises issues of the control which such governments have over their own economies. Whilst the role of multinational companies has been decisive for the fate of THIRD WORLD economies and is central to the concept of IMPERIALISM and NEOIMPERIALISM, the largest companies have the majority of their investments in industrial countries. Investment in the Third World may not be the most important area for multinational companies, but they derive high profits from such investments and the effect on small Third World countries can be very significant. See also DEPENDENT INDUSTRIALIZATION, DEPENDENCY THEORY, UNEQUAL EXCHANGE.

multinational company

see MULTINATIONAL ENTERPRISE.

multinational company (MNC) or multinational enterprise (MNE)

a firm that owns production, sales and other revenue-generating assets in a number of countries. Foreign direct investment by MNCs in the establishment or acquisition of overseas raw material and components operations, production plants and sales subsidiaries occurs because of the potentially greater cost-effectiveness and profitability in obtaining inputs and servicing markets through a direct presence in a number of locations rather than sole reliance on a single home base and IMPORTS and EXPORTS for the firm's international operations.

A firm may possess various COMPETITIVE ADVANTAGES over rival suppliers (‘firm-specific advantages’) in the form of patented process technology or a unique branded product that it can better exploit and protect by establishing overseas supply facilities. Direct investment may enable a firm to reduce its distribution costs and keep in touch more closely with local market conditions - changes in consumer tastes, competitors’ actions, etc. Moreover, direct investment enables a firm both to avoid governmental restrictions on market access, such as TARIFFS and QUOTAS, and to benefit from other ‘country-specific advantages’ such as the availability of government cash grants and subsidies on inward investment. In the case of inputs, direct investment allows the MNC to take advantage of some countries’ lower labour costs or provides access to superior technological know-how. See FOREIGN INVESTMENT, FOREIGN MARKET SERVICING STRATEGY, INTERNALIZATION, TRANSFER PRICE, MIXER COMPANY, EXCHANGE RATE EXPOSURE, STRATEGIC ALLIANCE, SCREWDRIVER OPERATION.

单词	multinational company
释义	multinational company multinational company or multinational corporation a company which operates from a home base in one country with subsidiaries in others. The term transnational company has increasingly been preferred to describe large international corporations since they may not have an easily identifiable home base. World economy and trade is increasingly dominated by such companies which many authors see as outside the control of national governments. This raises issues of the control which such governments have over their own economies. Whilst the role of multinational companies has been decisive for the fate of THIRD WORLD economies and is central to the concept of IMPERIALISM and NEOIMPERIALISM, the largest companies have the majority of their investments in industrial countries. Investment in the Third World may not be the most important area for multinational companies, but they derive high profits from such investments and the effect on small Third World countries can be very significant. See also DEPENDENT INDUSTRIALIZATION, DEPENDENCY THEORY, UNEQUAL EXCHANGE. multinational company multinational company see MULTINATIONAL ENTERPRISE. multinational company (MNC) or multinational enterprise (MNE) a firm that owns production, sales and other revenue-generating assets in a number of countries. Foreign direct investment by MNCs in the establishment or acquisition of overseas raw material and components operations, production plants and sales subsidiaries occurs because of the potentially greater cost-effectiveness and profitability in obtaining inputs and servicing markets through a direct presence in a number of locations rather than sole reliance on a single home base and IMPORTS and EXPORTS for the firm's international operations. A firm may possess various COMPETITIVE ADVANTAGES over rival suppliers (‘firm-specific advantages’) in the form of patented process technology or a unique branded product that it can better exploit and protect by establishing overseas supply facilities. Direct investment may enable a firm to reduce its distribution costs and keep in touch more closely with local market conditions - changes in consumer tastes, competitors’ actions, etc. Moreover, direct investment enables a firm both to avoid governmental restrictions on market access, such as TARIFFS and QUOTAS, and to benefit from other ‘country-specific advantages’ such as the availability of government cash grants and subsidies on inward investment. In the case of inputs, direct investment allows the MNC to take advantage of some countries’ lower labour costs or provides access to superior technological know-how. See FOREIGN INVESTMENT, FOREIGN MARKET SERVICING STRATEGY, INTERNALIZATION, TRANSFER PRICE, MIXER COMPANY, EXCHANGE RATE EXPOSURE, STRATEGIC ALLIANCE, SCREWDRIVER OPERATION. AcronymsSeemobile network code
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