MULTINATIONAL COMPANY

We live in a society in which everything and everyone is connected with social,

economic and political bonds and is dependent on one another. Internationalization
is present almost in every human's activity. This interconnection, which is
happening on international, institutional and interpersonal level is defined as
globalization (trach, 2009, 12). Its phenomenon has fully emerged in the second
half of the twentieth century. About this time, multinational companies (MNCs) have
started forming as a consequence of economic globalization and have become the
main catalyst of further deepening of globalization trends (Blaek, afrov
Drilov, 2013, 1). Economic globalization is defined as one of four dimensions of
globalization on state level according to A. T. Kearney (trach, 2009, 14). The other
three are personal contact, technological integration and political involvement.
MNCs invoke discussion whether these powerful, wealthy organizations just
concentrate strength in hands of the rich minority and have even the force to
control nations and cause their overthrow, or they represent the most advanced
form of a business, which is necessary for further economic and social progress
(Ghertman, 1997, 5). Nevertheless, their strengthening impact is noticeable on
national industry of every host country. Just to illustrate, the following are the
affects of multinational companies on selected economic activities: they provide
working positions for citizens of countries of their business operations, they
capitalize resources of states and they pay taxes (Blaek, afrov Drilov, 2013,
2). Dvoek (2006, 154-155) further mentions technology transfers, links in the
global production system between multinational company and its suppliers, growing
importance of outsourcing and influence these companies have on national policy.
Evidence of the fact that multinational companies really are phenomenon of today's
globalized world is also a huge increase in scholarly interest in this topic in the last
two decades (Dunning et al., 2008, xxii).
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