Pub. date: 2011 | Online Pub. Date: October 04, 2011 | DOI: 10.4135/9781412994163 | Print ISBN: 9781412959636 | Online ISBN: 9781412994163| Publisher:SAGE Publications, Inc.About this encyclopedia
Multinational Corporations (MNCs)
Susan K. Sell
Multinational corporations fascinate many international political economy scholars. Scholars disagree about their significance and their impact but continue to analyze their dynamic evolution in the global economy. Multinational corporations are private firms that operate in multiple countries. Their primary motivation is economic profit. They may engage in investment, sales, production, services, extractive processes, or any combination of these. Multinational corporations’ activities propel economic globalization. They may invest, set up shop, or even buy existing domestic firms as the multinational expands. This entry addresses first the broad views about multinational corporations and then the corporations’ motivations to go abroad. The entry continues with a historical overview and concludes with controversies surrounding multinational corporations. Multinational corporations are incorporated in a home country and are chartered according to the home country's laws and regulations. Analysts have debated the extent to which home country regulations shape multinational corporations’ outward conduct. Some argue that such ...