Multinational Corporations
By: h
MULTINATIONAL CORPORATIONS What are MNCs Multinational corporations (MNCs) are another type of nongovernmental actor and are private businesses headquartered in one state that invest and operate extensively in other states. They are sometimes called transnational corporations or international corporations. Much controversy surrounds MNCs. There are many individuals and organisations who have critical and negative views about MNCs, and then of course there are those who support them. MNCs generate enormous global sales ? approximately $5.2 trillion pa. A conservative estimation of the number of jobs associated with MNCs is 150 million. Transnational Banks (TNBs) have played a major role in the expansion of MNCs. TNBs have made capital highly mobile and their contribution to globalization has led to worldwide financial integration. MNCs? Global Reach and Economic Power Before WWII, most MNCs established foreign operations to secure sources of raw materials. After 1957, when the EEC was created, large numbers of MNCs began investing in Europe, mainly in manufacturing. It was advantageous for US firms to build production facilities in Europe, where they too could be protected by the tariff wall of the EEC. In other words, goods could be produced and sold within the EEC as domestic products,
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