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Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in , was 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.
The history of multinational corporations is closely intertwined with the history of colonialism , the first multinational corporations being founded to undertake colonial expeditions at the behest of their European monarchical patrons.
Create Alert. In fact, Paris has been defined as the "thinking head of the national productive system" Beckouche, Globally, this strategy was initially based on the search of markets in developing countries-with the goal of acquiring production scale and international experience-and only then in the entrance in developed markets. Eluka, et al. You can help adding them by using this form. The high capacity of Chinese and Brazilian firms of that Consortium to finance the business was explained by the fact that it had access to low-cost capital, as well as to prior arrangements with contractors and suppliers, which enabled the Consortium to work with lower prices. Thus, the development of cross-border corporate integration and intra-border inter-company sectoral integration, as new forms of governance, makes it increasingly.
During the 19th century, formal corporate rule over colonial holdings largely gave way to state-controlled colonies, [47] [48] however corporate control over colonial economic affairs persisted in a majority of colonies. During the process of decolonization , the European colonial charter companies were disbanded, [43] with the final colonial corporation, the Mozambique Company , dissolving in However the economic impact of corporate colonial exploitation has proved to be lasting and far reaching, [49] with some commentators asserting that this impact is among the chief causes of contemporary global income inequality.
Contemporary critics of multinational corporations have charged that some present day multinational corporations follow the pattern of exploitation and differential wealth distribution established by the now defunct colonial charter corporations, particularly with regards to corporations based in the developed world that operate resource extraction enterprises in the developing world, [50] such as Royal Dutch Shell , and Barrick Gold.
Some of these critics argue that the operations of multinational corporations in the developing world take place within the broader context of neocolonialism. However, multinational corporations from emerging markets are playing an ever-greater role, increasingly impacting the global economy. Anti-corporate advocates criticize multinational corporations for being without a basis in a national ethos , being 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.
Studies of the macro-and micro-level effects of these factors on the environment have often arrived at conflicting conclusions. Buckley and Casson () in their . Authors: Buckley, Peter J., Casson, Mark. This book presents a new approach to the analysis of the multinational enterprise, with a new introduction the analysis is brought firmly up-to-date. The Multinational Enterprise in the World Economy.
In other words, increased mobility of multinational corporations benefit capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality , unemployment , and wage stagnation.
The aggressive use of tax avoidance schemes, and multinational tax havens , allows multinational corporations to gain competitive advantages over small and medium-sized enterprises. From Wikipedia, the free encyclopedia. Corporation operating in multiple countries. Main article: Foreign direct investment. Main article: Transnational corporation. Further information: International taxation and Extraterritorial jurisdiction.
Further information: International legal system. See also: Charter company and Neocolonialism. Main articles: Anti-globalization movement and Anti-corporate activism. Bloomsbury Press, , pp. London Review of Books , Vol. Retrieved 13 March Murray Sayle : "The Netherlands United East Indies Company Verenigde Oostindische Compagnie, or VOC , founded in , was the world's first multinational, joint-stock, limited liability corporation — as well as its first government-backed trading cartel. Our own East India Company , founded in , remained a coffee-house clique until , when it, too, began selling shares, not in individual voyages, but in the Company itself, by which time its Dutch rival was by far the biggest commercial enterprise the world had known.
Retrieved 8 August Deloitte Insights. Retrieved 14 August It was a new type of institution: the first multinational company, and the first to issue public stock. These innovations allowed a single company to mobilize financial resources from a large number of investors and create ventures at a scale that had previously only been possible for monarchs. Retrieved 25 May Retrieved 20 May Lowy Institute. Retrieved 28 May Retrieved 22 May The nature of the transnational firm.
Voorhees, Emerson L. Seim, and John I. Pearson Education Inc. Romana College. Archived from the original on 27 November Retrieved 3 January International Financial Management,6th Edition.
Beijing Chengxin Weiye Printing Inc. Gary : Retrieved 2 February Krugman, Paul 20 March Roy D. ISBN X". Archived from the original on Retrieved Asialink Business. Carnegie Endowment for International Peace. Lawyer Monthly Legal News Magazine. The Economist. The Palgrave Dictionary of Transnational History.
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Arena 63 : As noted by Kumar in the current competitive level of the global economy, multinational corporations play an indispensable role especially in an emerging economy like Nigeria. In a recent study, Osuagwu and Ezie submit that, despite the negativity associated with the operations of some multinational corporations in Nigeria, it has its positives as well.
However, there have also been contestations as to the role of multinational corporations in the economic wellbeing of countries. Therefore, this study is set to investigate the influence multinational corporations have on the economic development of Nigeria, based on extant literature. Multinational corporations comprise businesses operating or having business interests in more than one country, mostly headquartered in the parent country. There have been several definitions of multinational enterprise, which are also known as transnational corporations Kumar, Therefore, multinational corporations are involved in the transactions of large volume of businesses.
According to Udoka multinational corporations are organizations which operate strategically on an international scale. A multinational corporation is a company, firm or enterprise that operates worldwide with its headquarters in a metropolitan or developed country.
All the definitions cited above suggest different distinct characteristics of multinational enterprise. Lazarus pointed out that, for a corporation to qualify to be called multinational, it must have functional offices in at least two countries. While, Dunning suggested that, the organization must be involved in foreign direct investment and should be operating not just in its parent country.
Kumar supported this view. However, he noted that, they should have production facility or distribution channel in several countries.
All the definitions seem to agree that, multinational corporations should be present in more than two countries. The historical development of multinational companies in Nigeria can be traced as far back as the mid nineteenth century however they started to gain a lot of attention in the middle of the 20th century. According to Ajayi and Omolekan , the genealogy of multinational corporations in Nigeria can be traced as far back as the colonial dispensation. United African Company, then known as Nigerian Motors Ltd a subsidiary of the Royal Niger Company was established by the British government and involved in the extraction of raw mineral resources e.
With the discovery of oil in the Niger Delta in the s, there was influx of multinational corporations in the country. As suggested by Abdul-Gafaru , multinational corporations help in the development of local manpower through the transfer of knowledge, experience, technology which may not be available locally.