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Multinational Corporation
A MULTINATIONAL CORPORATION or WORLDWIDE ENTERPRISE is a corporate organization that owns or controls production of goods or services in two or more countries other than their home country. CONTENTS * 1 Names * 2 Overview * 3 Theoretical background * 4 Transnational corporations * 5 Multinational enterprise * 6 Multinational corporation and colonialism * 7 Criticism of multinationals * 8 See also * 9 References * 10 External links NAMESA multinational corporation can also be referred to as an MULTINATIONAL ENTERPRISE (MNE), a INTERNATIONAL CORPORATION, a TRANSNATIONAL CORPORATION, or a STATELESS CORPORATION. There are subtle but real differences between these three labels, as well as those labels of MULTINATIONAL CORPORATION and a WORLDWIDE ENTERPRISE. OVERVIEW Toyota is one of the world's largest multinational corporations with their headquarters in Toyota City , Japan . A multinational corporation (MNC) is usually a large corporation incorporated in one country which produces or sells goods or services in various countries. The two main characteristics of MNCs are their large size and the fact that their worldwide activities are centrally controlled by the parent companies
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Corporation
A CORPORATION is a company or group of people authorized to act as a single entity (legally a person ) and recognized as such in law. Early incorporated entities were established by charter (i.e. by an _ad hoc_ act granted by a monarch or passed by a parliament or legislature). Most jurisdictions now allow the creation of new corporations through registration . Corporations come in many different types but are usually divided by the law of the jurisdiction where they are chartered into two kinds: by whether they can issue stock or not, or by whether they make profit or not. Where local law distinguishes corporations by ability to issue stock, corporations allowed to do so are referred to as "stock corporations", ownership of the corporation is through stock, and owners of stock are referred to as "stockholders" or "shareholders". Corporations not allowed to issue stock are referred to as "non-stock" corporations; those who are considered the owners of the corporation are those who have obtained membership in the corporation, and are referred to as a "member" of the corporation. Corporations chartered in regions where they are distinguished by whether they are allowed to be for profit or not are referred to as "for profit" and "not-for-profit" corporations, respectively. There is some overlap between stock/non-stock and for profit/not-for-profit in that not-for-profit corporations are always non-stock as well
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Toyota
TOYOTA MOTOR CORPORATION (Japanese : トヨタ自動車株式会社, Hepburn : _ Toyota Jidōsha KK _, IPA: , English: /tɔɪˈoʊtə/ ) is a Japanese multinational automotive manufacturer headquartered in Toyota, Aichi , Japan. In March 2014, Toyota's corporate structure consisted of 338,875 employees worldwide and, as of October 2016 , was the ninth-largest company in the world by revenue . As of 2016, Toyota is the world's second-largest automotive manufacturer behind German Volkswagen Group . Toyota was the world's first automobile manufacturer to produce more than 10 million vehicles per year which it has done since 2012, when it also reported the production of its 200-millionth vehicle. As of July 2014 , Toyota was the largest listed company in Japan by market capitalization (worth more than twice as much as #2-ranked SoftBank ) and by revenue. Toyota is the world's market leader in sales of hybrid electric vehicles , and one of the largest companies to encourage the mass-market adoption of hybrid vehicles across the globe. Cumulative global sales of Toyota and Lexus hybrid passenger car models achieved the 10 million milestone in January 2017. Its Prius family is the world's top selling hybrid nameplate with over 6 million units sold worldwide as of January 2017
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Toyota City
TOYOTA (豊田市, _Toyota-shi_) is a city in Aichi Prefecture , Japan. As of May 2015 , the city had an estimated population of 420,076 and a population density of 457 persons per km². The total area was 918.32 square kilometres (354.57 sq mi). It is located about 35 minutes from Nagoya by way of the Meitetsu Toyota Line . Several of Toyota Motor Corporation 's manufacturing plants, including the Tsutsumi plant, are located here. The longstanding ties between the Toyota Motor Corporation and the town of Toyota-shi, formerly known as Koromo (挙母市, _Koromo-shi_), gave the town its current name. CONTENTS* 1 Geography * 1.1 Surrounding municipalities * 2 History * 3 Transportation * 3.1 Railway * 3.2 Highways * 3.3 Japan National Route * 4 Economy * 5 Education * 5.1 Colleges and universities * 5.2 Primary and secondary education * 5.3 International schools * 6 Sister city relations * 7 Local attractions * 8 Sports facilities * 9 Notable people from Toyota * 10 References * 11 External links GEOGRAPHY Toyota is located in north-central Aichi Prefecture, and is the largest city in the prefecture in terms of area
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Japan
Coordinates : 35°N 136°E / 35°N 136°E / 35; 136 Japan 日本国 _Nippon-koku_ _Nihon-koku_ _ Flag Imperial Seal ANTHEM: * " Kimigayo _" * 君が代 "His Imperial Majesty's Reign" GOVERNMENT SEAL OF JAPAN * _ * Go-Shichi no Kiri_ (五七桐) Area controlled by Japan shown in green; claimed but uncontrolled shown in light green
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East India Company
The EAST INDIA COMPANY (EIC), also known as the HONOURABLE EAST INDIA COMPANY (HEIC) or the BRITISH EAST INDIA COMPANY and informally as JOHN COMPANY, was an English and later British joint-stock company , which was formed to pursue trade with the " East Indies
East Indies
" (or Maritime Southeast Asia in present-day terms) but ended up trading mainly with the Indian subcontinent and Qing China
Qing China
. The historian William Dalrymple says: It was not the British government that seized India at the end of the 18th century, but a dangerously unregulated private company headquartered in one small office, five windows wide, in London, and managed in India by an unstable sociopath – Clive . Originally chartered as the "Governor and Company of Merchants of London
London
trading into the East Indies", the company rose to account for half of the world's trade, particularly in basic commodities including cotton , silk , indigo dye , salt , saltpetre , tea and opium . The company also ruled the beginnings of the British Empire
British Empire
in India. The company received a Royal Charter
Royal Charter
from Queen Elizabeth I on 31 December 1600, making it the oldest among several similarly formed European East India Companies . Wealthy merchants and aristocrats owned the company's shares. Initially the government owned no shares and had only indirect control
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Dutch East India Company
The UNITED EAST INDIA COMPANY or the UNITED EAST INDIAN COMPANY, also known as the UNITED EAST INDIES COMPANY (Dutch : _VEREENIGDE OOST-INDISCHE COMPAGNIE_; or VERENIGDE OOSTINDISCHE COMPAGNIE in modern spelling; VOC), referred to by the British as the DUTCH EAST INDIA COMPANY, or sometimes known as the DUTCH EAST INDIES COMPANY, was originally established as a chartered company in 1602, when the Dutch government granted it a 21-year monopoly on the Dutch spice trade . A multinational company , it is also often considered to be the world's first truly transnational corporation . In the early 1600s, the VOC became the first company in history to issue bonds and shares of stock to the general public. In other words, the VOC was the world's first formally listed public company , because it was the first corporation to be ever actually listed on an official (formal) stock exchange . As the first historical model of the quasi-fictional concept of the megacorporation , the VOC possessed quasi-governmental powers, including the ability to wage war, imprison and execute convicts, negotiate treaties, strike its own coins , and establish colonies. With its pioneering institutional innovations, the company played a crucial role in business , socio-politico-economic, and financial history of the world
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Economic Liberalism
ECONOMIC LIBERALISM is an economic system organized on individual lines, which means that the greatest possible number of economic decisions are made by individuals or households rather than by collective institutions or organizations. It includes a spectrum of different economic policies, such as freedom of movement , but it is always based on strong support for a market economy and private property in the means of production. Although economic liberalism can also be supportive of government regulation to a certain degree, it tends to oppose government intervention in the free market when it inhibits free trade and open competition. Economic liberalism is most often associated with support for free markets and private ownership of capital assets . It contrasts with protectionism because of its support for free trade and open markets . Historically, economic liberalism arose in response to mercantilism and feudalism . Today, economic liberalism is also generally considered to be opposed to non-capitalist economic orders, such as socialism and planned economies . An economy that is managed according to these precepts may be described as a LIBERAL ECONOMY. CONTENTS* 1 Origins * 1.1 Position on state interventionism * 2 See also * 3 References * 3.1 Bibliography * 4 External links ORIGINSArguments in favor of economic liberalism were advanced during the Enlightenment , opposing mercantilism and feudalism
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Free Market
One view is that a FREE MARKET is a system in which the prices for goods and services are determined by the open market and consumers , in which the laws and forces of supply and demand are free from any intervention by a government , price-setting monopoly, or other authority. Another view considers systems with significant market power , inequality of bargaining power , or information asymmetry to be less than free. It is a result of recognizing a need, followed by the need being met. Some believe a free market contrasts with a regulated market , in which a government intervenes in supply and demand through various methods such as tariffs used to restrict trade and protect the economy. Prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy. Others believe regulation might be part of a free market if the regulation is necessary to control significant market power , inequality of bargaining power, or information asymmetry. The latter view implies a free market is not necessarily deregulated, although some of those with the former belief speak of free markets and deregulated markets as similar
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Globalized
GLOBALIZATION (or GLOBALISATION; see spelling differences ) refers to the free movement of goods, capital, services, people, technology and information. It is the action or procedure of international integration of countries arising from the convergence of world views , products, ideas, and other aspects of culture . Advances in the means of transport (such as the steam locomotive , steamship , jet engine , and container ships ) and in telecommunications infrastructure (including the rise of the telegraph and its modern offspring, the Internet
Internet
and mobile phones ) have been major factors in globalization, generating further interdependence of economic and cultural activities. Though many scholars place the origins of globalization in modern times , others trace its history long before the European Age of Discovery and voyages to the New World
New World
, some even to the third millennium BC. Large-scale globalization began in the 1820s. In the late 19th century and early 20th century, the connectivity of the world's economies and cultures grew very quickly. The term globalization is recent, only establishing its current meaning in the 1970s. In 2000, the International Monetary Fund
International Monetary Fund
(IMF) identified four basic aspects of globalization: trade and transactions , capital and investment movements, migration and movement of people, and the dissemination of knowledge
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Internalization Theory
INTERNALIZATION THEORY is a branch of economics that is used to analyse international business behaviour. CONTENTS * 1 Outline * 2 Refinements * 3 Variants * 4 Controversies * 5 Links to international business theory * 6 Policy implications * 7 References OUTLINE Internalization theory focuses on imperfections in intermediate product markets. Two main kinds of intermediate product are distinguished: knowledge flows linking research and development (R or it may produce at home and export to the country instead. Firms without special knowledge may become multinational to internalise supplies of components or raw materials in order to guarantee quality or continuity of supply, or for tax advantages from transfer pricing . VARIANTSBuckley and Casson (1976) was a seminal work. Two Canadian economists, Stephen Hymer and John McManus, independently noted the relevance of internalization, and their contribution is the subject of debate. Alan M. Rugman linked internalization theory to his earlier work on market imperfections, applying it empirically in a North American context. Jean-Francois Hennart subsequently developed a variant of the theory that emphasised the interplay of headquarters authority and local autonomy within the firm. Internalization theory is also closely related to Stephen Magee’s appropriability theory
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Eclectic Paradigm
The ECLECTIC PARADIGM is a theory in economics and is also known as the OLI-MODEL OR OLI-FRAMEWORK. It is a further development of the internalization theory and published by John H. Dunning in 1979. * OWNERSHIP ADVANTAGES specific advantages refer to the competitive advantages of the enterprises seeking to engage in Foreign direct investment (FDI). The greater the competitive advantages of the investing firms, the more they are likely to engage in their foreign production. * LOCATION ADVANTAGES Locational attractions refer to the alternative countries or regions, for undertaking the value adding activities of multinational enterprises (MNEs). The more the immobile, natural or created resources, which firms need to use jointly with their own competitive advantages, favor a presence in a foreign location, the more firms will choose to augment or exploit their O specific advantages by engaging in FDI. * INTERNALIZATION ADVANTAGES Firms may organize the creation and exploitation of their core competencies. The greater the net benefits of internalizing cross-border intermediate product markets, the more likely a firm will prefer to engage in foreign production itself rather than license the right to do so. SOURCES * ^ A B Hagen, Antje (1997). Deutsche Direktinvestitionen in Grossbritannien, 1871-1918 (Dissertation) (in German). Jena: Franz Steiner Verlag. p. 32. ISBN 3-515-07152-0 . * ^ A B C D Twomey, Michael J. (2000)
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Harvard Business Review
The HARVARD BUSINESS REVIEW (HBR) is a general management magazine published by Harvard Business Publishing
Harvard Business Publishing
, a wholly owned subsidiary of Harvard University
Harvard University
. HBR is published 6 times a year and is headquartered in Brighton Watertown , Massachusetts. HBR's articles cover a wide range of topics that are relevant to various industries, management functions, and geographic locations. These focus on areas including leadership, organizational change, negotiation, strategy, operations, marketing, finance, and managing people. Harvard Business Review
Harvard Business Review
has been the frequent publishing home for scholars and management thinkers such as Clayton M. Christensen , Peter F. Drucker , Michael E. Porter , Rosabeth Moss Kanter , John Hagel III , Thomas H. Davenport , Gary Hamel , C.K. Prahalad , Vijay Govindarajan , Robert S
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Nestlé
NESTLé S.A. is a Swiss transnational food and drink company headquartered in Vevey
Vevey
, Vaud , Switzerland. It is the largest food company in the world, measured by revenues and other metrics, since 2014. It ranked No. 72 on the Fortune Global 500 in 2014 and No. 33 on the 2016 edition of the Forbes Global 2000 list of largest public companies. Nestlé's products include baby food , medical food , bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of Nestlé's brands have annual sales of over CHF 1 billion (about US$ 1.1 billion), including Nespresso
Nespresso
, Nescafé
Nescafé
, Kit Kat , Smarties
Smarties
, Nesquik , Stouffer\'s , Vittel , and Maggi
Maggi
. Nestlé
Nestlé
has 447 factories, operates in 194 countries, and employs around 339,000 people. It is one of the main shareholders of L\'Oreal , the world's largest cosmetics company. Nestlé
Nestlé
was formed in 1905 by the merger of the ANGLO-SWISS MILK COMPANY, established in 1866 by brothers George and Charles Page, and FARINE LACTéE HENRI NESTLé, founded in 1866 by Henri Nestlé (born Heinrich Nestle)
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Royal Dutch Shell
ROYAL DUTCH SHELL PLC (LSE : RDSA, RDSB), commonly known as SHELL, is a British–Dutch multinational oil and gas company headquartered in the Netherlands and incorporated in the United Kingdom . It is one of the six oil and gas "supermajors " and the sixth-largest company in the world measured by 2016 revenues (and the largest based in Europe). Shell was first in the 2013 Fortune Global 500 list of the world's largest companies; in that year its revenues were equivalent to 84% of the Netherlands' $556 billion GDP. Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production , refining , distribution and marketing , petrochemicals , power generation and trading . It also has renewable energy activities in the form of biofuels and wind . Shell has operations in over 70 countries, produces around 3.7 million barrels of oil equivalent per day and has 44,000 service stations worldwide. As of 31 December 2014, Shell had total proved reserves of 13.7 billion barrels (2.18×109 m3) of oil equivalent. Shell Oil Company , its principal subsidiary in the United States, is one of its largest businesses. Shell holds 50% of Raízen , a joint venture with Cosan , which is the third-largest Brazil-based energy company by revenues and a major producer of ethanol
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The Hague
THE HAGUE (/ðə ˈheɪɡ/ ; Dutch : _Den Haag_, pronounced (_ listen ) or 's-Gravenhage_ ( listen )) is a city on the western coast of the Netherlands and the capital of the province of South Holland . With a population of 520,704 inhabitants (as of 1 April 2016) and more than 1 million inhabitants including the suburbs, it is the third-largest city in the Netherlands, after Amsterdam and Rotterdam . The Rotterdam The Hague Metropolitan Area , with a population of approximately 2.7 million, is the 12th-largest in the European Union and the most populous in the country. Located in the west of the Netherlands, The Hague is in the centre of the Haaglanden conurbation and lies at the southwest corner of the larger Randstad conurbation. The Hague is the seat of the Dutch government , parliament , the Supreme Court , and the Council of State , but the city is not the capital of the Netherlands , which constitutionally is Amsterdam
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