Globalisation & Multinational Corporations

Globalisation & Multinational Corporations

1. MNCs, MNEs, MNOs & TNCs

   • 'Enterprises operating in a number of countries who have production or service facilities outside their country of origin'
   • An organisation which acquires ownership or other contractual ties in other organisations (including companies and unincorporated businesses) outside its home country
   • Responsible to shareholders not nation states
   • Vertically integrated MNCs:
     • Different stages of same productive process taking place in different countries
       • Example: BP
   • Horizontally integrated MNCs
     • Performing same basic product operation in each country in which they operate
       • Example: Uniliver

2. Three Ages of Globalisation

   • 'First Age' of MNCs (1960s)
     • Controlled operations from home
     • Manufactured in home country
     • Exploited domestic economies of scale
     • Utilised domestic R&D

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