Multinational Corporations (Multinational Corporations) are gigantic companies, indeed their budgets are larger than those of many countries. For example, Toyota's annual revenue amounts to 411 billion dollars, Microsoft's to 282 billion dollars, Facebook's to 155 billion dollars, Pepsi Cola's to 92 billion dollars, among others.
A definition of a multinational corporation is needed: It is a company owned by multiple nationalities, managed by people from multiple nationalities, and operates in multiple foreign countries, even though its strategies, policies, and business plans are designed at its main headquarters located in the original country where it was first established.
For further clarification, multinational corporations are a collection of independent legal entities, consisting of a parent company and its branches and subsidiaries in different countries, all operating within a unified global strategy controlled from a single main headquarters. They are distinguished by their massive size, wide geographical spread, and the ability to move resources and technology across borders to achieve their global economic goals. Furthermore, they adapt to the local laws of the countries they operate in.
For those who do not know, most Western countries have (economic intelligence agencies). They specialize in collecting information and data needed by those wishing to invest from their countries abroad. It is important to know that a foreign investor from Western countries comes to you with most of the basic information about your country. As soon as they think of investing in a particular country, all they have to do is send a message to (the economic intelligence department), which then provides them with all the required information, including necessary guidance and advice. They also subject them to orientation courses about the target country, to the extent that they teach them some slang words, traditional foods, and some essential phrases.
Most importantly, these countries annually publish a substantial book called (Who is Who), which contains (the names of influential and significant people) in many countries of the world, with whom you can connect for partnership purposes, or to offer them agencies. This also includes getting support from these influential individuals. All this aims to educate and guide their investors to avoid exploitation and to save them time in gathering necessary information and assessing whether the country is attractive for investment or not.
My humble information about multinational corporations was derived from two sources: The first source:— the topic of my research study for my Master's in Business Administration at the end of the 1980s, was titled (Multinational Corporations & the Adaptation Between Local & International Environment), and the case study was about Pepsi Cola Global. The second source:— my experience in the private sector that lasted for about (50) years, after I graduated from the University of Baghdad in 1975, with a degree in English Literature.
Multinational corporations, on the international real-life stage, are giant countries; indeed, they direct giant countries; in fact, they changed the previously understood concept where (politics used to direct the economy), but their influence and impact have reversed the concept to (the economy now directs the policies of countries). The major countries offer a lot to these companies and sometimes pressure the host countries to facilitate these companies' achievement of their goals.
For those who do not know, America's purpose in imposing the World Trade Organization (WTO) in the mid-1990s on most countries of the world, specifically the developing third world, was to open the markets of these countries to the products of multinational corporations, and this involves directly abolishing (the protective closure of national products). Thus, the products of these giant companies enter the markets of those countries and eliminate the national products, as they cannot compete with the price, quality, advertising arts, marketing, after-sales services, and other logistical services of these companies.
Multinational corporations enter countries that possess attractive investment elements, such as:—
1) Political and security stability.
2) Infrastructure services.
3) Encouraging energy and water prices.
4) Additionally, regional and international connectivity with good networks of roads and ports.
5) Bearable taxes.
6) Stability in laws and legislation.
7) Granting grace periods.
8) Availability of industrial cities.
9) Cheap labor, and skilled labor.
10) The prevalence of European languages, especially the English language.
11) Limited spread of corruption.
12) And that the external environment surrounding the site is not hostile or pressuring.
13) And stable relations with neighboring countries.
14) And that the country is not classified as a (Risky Zone or War Zone).
15) And that there are no gangs or ethnic or religious conflicts in the country.
16) And that the judiciary is independent, upholds justice, and achieves fairness.
17) And that there are no restrictions on currency transfers.
18) And that advanced technology is available.
And many more conditions that must be met in that country for multinational corporations to seek to invest in it.
Dear readers, it is obvious and known to all that capital is cowardly, indeed timid (as it is said, it fears even the shadow of an ant). Moreover, capital never takes risks, and it never involves itself in a country or region that is not stable both security-wise and politically at all. Capital can take risks, it dares, and it is bold, at the level of internal affairs of the institution, especially in the areas of marketing and sales, and competition but to a limit of no more than (15%).
When attractive investment elements are available, multinational corporations (come to you), (without you having to seek them out). Because these companies are constantly monitoring for investment opportunities in all countries of the world. They seize promising opportunities to expand their activities and control more markets to maximize their revenues.
