Multinational Corporations
Multinational Corporations surround us everyday whether we are buying products, employees of the company, or we hear about the latest scandals of the corporation.   A multinational corporation is defined as an enterprise that manages production establishments or delivers services in at least two or more countries.  Multinationals have played an important role in globalization. Given their international reach and mobility, prospective countries, and sometimes regions within countries, must compete with each other to have MNCs locate their facilities.  With the building or the acquisition of a corporation arise numerous problems, benefits, and just general issues. They have large investments and they produce many items in away they are our number one income producers largely effecting the GDP.  
 	Multinational Corporations can be horizontally integrated multinational corporations which manages production establishments located in different countries to produce the same or similar products. It can also be vertically integrated multinational corporations which then manage production establishment in certain country/countries to produce products that serve as input to its production establishments in other country/countries.  Most companies are moving away from being vertically integrated to being horizontally integrated.   
   	There are four forms that in a sense classify a multinational corporation in a sense that they can do business internationally, but only one is suitable for classifying an MNC.  Exporting which is to sell an item that is produced in Asia then selling it in Europe.  Licensing is another form where the company licenses another company, but there is a return on money their allowing them to make the product but they don’t have the name.  Joint venture is a business organization established by two or more companies that combines their skills and assets. However, there is no full control of the home corporation.  The last form is buying or building a subsidiary that will produce item and sell all over the world.  This is the only way to classify it because they have full control of what is bring produced in that country.  People decide to build MNC because it protects proprietary technology, meaning it gives them power. It helps with low cost labor, transportation, their maybe a law that would help them, and their maybe a favorable tax.  
  	Many feel that problems to arise with multinational corporations such as a fear of exploitation is the company using the host country are they being fair they maybe taking advantage of poor and developing nations.  The company may be giving a lower, minimal wages to the host company, instead of providing them with higher paid jobs.  Another issue is a loss of control once a company comes in they take control of the way the society lives the society becomes dependent instead of coming up with other solutions. Also another negative aspect on the source company is the export of technology that is not supposed to leak out to foreigners.  While their maybe negative aspects there is most definitely positive aspects to MNC’s such as job creation, higher earnings for investing companies.  Taxes that are in favor for the creation of revenue of the source country they may not have to pay so much in taxes.  Also, there may be favorable laws that might be on their side or limited regulation, so that they may run their company how they want to.