Multinational Finance
There is no single agreed-upon definition of the multinational (or transnational) enterprise. This is because multinationality has many dimensions and can be viewed from several perspectives - economic, political, legal, etc. Ownership criterion: some argue that ownership is the key criterion. A firm becomes multinational only when the headquarter or parent company is effectively owned by nationals of two or more countries. For example, Shell and Unilever, controlled by British and Dutch interests, are good examples. However, by ownership test, very few multinationals can be called multinational. The ownership of the overwhelming majority of MNCs are uninational. (see video) Nationality mix of headquarter managers: An international company is multinational if the managers of the parent company are nationals of several countries. Usually, managers of the headquarters are nationals of the home country. This may be a transitional phenomenon. However, very few companies pass this test currently. Business Strategy: global profit maximization Ethnocentric companies follow policies that are home country-oriented. Polycentric companies follow policies that are host country-oriented. Geocentric companies follow policies that are
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Approximate Word count = 2663
Approximate Pages = 11 (250 words per page double spaced)
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