Modern Management: concepts and skills, 14/e

Multinational Corporations

The term multinational corporation first appeared in American dictionaries about 1970, and it has since been defined in various ways in business publications and textbooks. For the purposes of this text, a multinational corporation is a company that has significant operations in more than one country. Essentially, a multinational corporation is an organization that is involved in doing business at the international level. It carries out its activities on an international scale, which disregards national boundaries, and it is guided by a common strategy from a corporation center.¹⁸

Neil H. Jacoby explains that companies go through six stages to reach the highest degree of multinationalization. As Table 4.1 indicates, ...