Multinational companies mainly refer to monopoly enterprises in developed capitalist countries, which are based in their own countries and set up branches or subsidiaries around the world through foreign direct investment to engage in international production and business activities.
The influence of transnational corporations is expanding day by day, and actually acts as the main driving force and pioneer of economic globalization. During the 10 years since the early 1990s, many multinational companies have greatly improved their overseas assets, income and employees. 1994-2004, the overseas assets of the world's largest 100 multinational companies rose from 4 1. 1% to 53.4%, while the transnational index of the world's largest 100 multinational companies rose from 2005 to 2004. More and more multinational companies adjust their past transnational development strategies to global development strategies. Global management has become the normal state of enterprise management.
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Main characteristics of transnational corporations
1. Generally, a large company with strong national strength has set up subsidiaries or branches in many countries through foreign direct investment or acquisition of local enterprises;
2. Generally, there is a complete decision-making system and the highest decision-making center. Although each subsidiary or branch has its own decision-making body, it can make decision-making activities according to its own business field and different characteristics, but its decision-making must obey the highest decision-making center;
3, generally from the global strategy to arrange their own business activities, in the world to seek market and reasonable production layout, fixed-point professional production, fixed-point sales of products, in order to maximize profits;
4. Generally speaking, because of its strong economic and technological strength, fast information transmission and fast transnational transfer of funds, it has strong competitiveness in the world;
5, many large multinational companies, because of their economic and technological strength or advantages in the production of certain products, or certain products, or in some areas, have different degrees of monopoly.
International companies that set up branches abroad or participate in enterprises with local capital through direct investment, technology transfer and other activities. Also known as multinational companies.
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