Multinational Essay Example | Topics and Well Written Essays - 750 words

Multinational - Essay Example This is why the biggest MNCs are all publicly owned corporations (Gerard, 2013). Some of the top 20 MNCs are rated in terms of revenues they generate. As figures indicate, majority of the biggest corporations are in the oil industry-no wonder, the constant increase in the prices of oil. However, out of top 10 corporations, some are in the automotive industry and consequently big oil consumers. The only retailer in the MNCs is Wal-Mart and this shows just how the oil industry is big business. Most of the fortune 500 companies are MNCs and majority of them are located or domiciled in the US, followed by China then Japan. Other countries such as France, Britain come trailing. MNCs must come up with systems and strategies so as to achieve all or some of their multinational business operations (John & Praveen, 2014). The globalizing economy is a constantly changing (however, not always stable) environment for doing business. Trade barriers have been falling and in the 1st 10 years of the 21st century, world trade amongst nations in goods and services developed quickly than domestic production. This means there is free flow of money across the borders of most countries, permitting corporations to look for the best financing rates-and at the same time letting investors seek for the best possible returns-anywhere worldwide. All of these procedures constitute what is referred to as globalization-a trend that has seen world economies become greatly interlinked and borderless. Corporations are no longer limited by their domestic borders and may operate any type of business activity any place in the world. Thus to corporations, globalization means that they are most likely to source for their raw materials everywhere, do research and development everywhere and compete anywhere while producing their pro ducts at any given place in the world. Globalization, however has come with its own challenges and is not a standardized evolutionary process, meaning that not all