Multinational Strategy and the Role of Planning
In the short time since the 1950s the rapid growth of international direct investment resulting in the emergence of the multinational corporation (MNC) has made these organisations a crucial component in the world economy. It is not that international corporate activity itself is new, for many of today’s largest corporations, both in the USA and Europe, had established themselves in overseas markets before the turn of the century. Further, new industries such as oil first developed essentially as multinational operations. Today the concern which has been voiced by the United Nations, the International Labour Office, individual nation-states and many other national and international organisations is based on the scale and methods of these enterprises, which pose dramatic potential threats to individual economies or even to economic independence. For the coming of the MNC raises the threat of a new form of economic colonialism and significantly reduces the power of individual nation states to determine their own independent economic, and hence social and other such policies.
KeywordsCash Flow Direct Investment Multinational Enterprise Political Risk Overseas Market
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