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Multinational

A multinational is a very large corporation that operates in more than one country, but has its headquarter in just one. The holding company, which is called parent company, is usually based in one country and controls the other companies of the organization, called subsidiaries which are based in other countries. The main objectives of multinationals are: to expand their operations in areas where the cost of labor and raw material is cheaper; To enlarge their presence in the world market; To get more influence on the world economy. Most multinationals usually operate as Public Limited Companies. Examples of multinationals are Nike, Shell, Fiat, Siemens. Nowadays multinationals are giants companies with a large number of employees, manufacturing plants and sales outlets in many countries. They own a very large proportion of the world’s productive resources and are responsible for over one third of the total world production. They have a lot of power to change prices and can sometimes influence government’s economic policies.

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