MNE
A major player in the international political economy is the multinational corporation or multinational enterprise as these structures of economy are commonly referred to. These are business or firms that hold offices and/or major production facilities in two or more different countries. The multinational corporation therefore is any business whether private or public that extends its production facilities or embarks in huge investments in capital across national boundaries. Since the end of World War II, the dominate western countries of Europe and the United States have long been the main headquarters of these multinational corporations, while the lesser developed nations of the world have been the sites for these corporations subsidiary markets and production facilities. On the subject matter of these multinational corporations, there exist two preeminent sources for the political science student in international political economics. The first is Richard Caves, whose article "The Multinational Enterprise as an Economic Organization" explains the creation and existence of the multinational corporations as a facility to more easily transport capital across international borders. The other source Osvaldo Sunkel, in his arti
The multinational corporation in this process takes on three different models according to Caves. The first is a multi-plant firm that produces the same goods in several geographically different locations. This is the static model of "horizontal multi-plant enterprise" as Caves refers to it. It is the most thoroughly basic kind of Multinational Corporation. The factories abroad are controlled under common management, and are run and operated in the most cost effective locations of production. In most cases of the horizontal multi-plant enterprise, the products or their effects are mobile between national markets. This horizontal enterprise will produce goods that may deprecate but will not have a short life span of productivity. The second model is the "vertically integrated multinational enterprise"; this is a corporation wherein the outputs of the corporation's plants serve as inputs to another of the corporation's plants. This is used in most cases to reduce the cost of production of certain goods. Semiconductors for example are made by the advanced technicians in highly industrialized countries, while the process of soldering the wires and boards of the conductors can be done in a lower-wage country. The third type of multinational firm is the "diversified company", which is a company whose plants inputs and outputs are neither horizontally nor vertically related. The reason for the creation of this firm is the multinational corporations bid to increase the diversification of the corporation's interests abroad. This is done to increase the viability of a company, whether it is to i
Some common words found in the essay are:
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Approximate Word count = 1075
Approximate Pages = 4 (250 words per page double spaced)
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