The Importance Of Multinational Companies
Exercises direct control over the policies of its affiliates.
Implements these business strategies in production, marketing, finance and human resources crosswise the international borders.
They have facilities and other assets in at least one country other than its home country and also have budgets that exceed those of many small countries.
The big multinational companies come from the United States of America, Western Europe and Japan and mainly they derive ¼ of their revenues from host countries they are held in. The first multinational company is the East India Company and it has begun the operation for years 1600 followed by the Dutch-East India Company, founded on 20th March 1602, which would become the largest company in the world for nearly 200 years.
Some multinational companies are very large with budgets that exceed some of the nations ' GDP-s and can also give a great impact on the local economies, and even in the entire world economy and they have an important role in the international relations and globalization. Such countries represent around 80% of the total population, and interpret about 20% of the world 's economic systems. (Antoine Van Agtmael 1981).
The world’s 500 largest and multinational companies generated about of $27.6 trillion in revenues and $1.5 trillion in profits for the year 2015 and employed 67 million people worldwide and they are represented by 33 countries. (Fortune Global 500)
Based on “Fortune Globe 500” the TOP ten companies
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