Topic: EconomicsInvestment

Last updated: January 19, 2020

Multinational Corporations (MNC) have continuously expanding their businesses, work forces in their own home country but now, MNC are currently expanding it internationally. Home country workers are now not only have to compete with people in their own country but they now have to face 3 billion people from all over the world. Most of the biggest corporations have gone international/global and does not take anymore of their home country workers due to several factors. Definition of Multinational corporation according to business dictionary (MNC) means an “enterprise operating in several countries but managed from one (home) country. Generally, any company or that derives a quarter of its revenue from operations outside of its home is considered a multinational corporation.( According to United Nations (UN)’s data, some 35,000 companies have direct investment in foreign countries, and the largest 100 of them control about 40% of the world trade.

In easier words, MNC is when it has control and power over its production in a lot of nations. Usually, MNC would set up it offices and factories in different regions to get cheaper labor and resources to produce its productions and MNC would go to a multinational location so they can earn more profits with lower cost of productions. The location of the MNCs would have their operational department all over the foreign countries while their headquarters are located in their own country. Most of the capital assets of the company must come from the main company and majority of the top level departments or jobs/board of directors are hold by people from the home country with proper professionally trained by experienced managers. Other than that, they have huge economic control or power, MNCs are usually one of the powerful economic entities, they would get their power by always pushing through with mergers and acquisitions of companies especially in the host country. Not only that, MNCs usually have advanced technology which makes it easier for the productions to produced in a little time. Productions of the MNCs have always been better quality because they have to compete with the rest of the MNCs in the world, they therefore have to focus on better quality product and always improving to be able to compete in the world level. Not only that, a better quality will actually increase its customers and chances to stay in the competitive market worldwide is high.

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An example of multinational corporations are Toyota, Coca Cola, Apple and Microsoft. On the other hand, westernize in the dictionary, means “to influence with ideas, customs, practices”.


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