Name: Angelica Hagad Subject: BACC6

Year and section

Study Guide 3

The Changing Nature of the Multinational Companies

a. What is multinational enterprise?

Multinational corporations are responsible for a huge slice of global employment, investment,
and research. To some, they are malevolent monopolizers that exploit labor and avoid taxes. To
others, they are engines of innovation and efficiency, contributing to global prosperity.
b. What are Non-U.S. Multinationals?
The non-US multinational is a companies that are not in the United States

Around 1960, non-USA multinationals could be counted on the fingers of one hand. Around
1970, they equaled the number, but they were too small to really hope to compete with their
big sisters in their home. However, the oil crisis, created by the Organization of Petroleum
Exporting Countries (OPEC) in 1973, changed the landscape of the world economy. Overnight,
some U.S. multinationals were forced to retreat, as they lost control of the production of crude
oil.
c. How do you describe the rise of mini-multinationals?
Globalization has moved beyond creating product supply chains that crisscross our planet.
Today’s internationalized economy entails a host of new software tools that allow companies to
exchange information and human talent effortlessly, opening up new economic sectors. The
current phase of globalization has given rise to the mini-multinational, where even small
companies take advantage of new software to leverage the knowledge and expertise of workers
near and far away.
d. Why are there anti-globalization protests?
People opposing globalization believe that international agreements and global financial
institutions, such as the International Monetary Fund (IMF) and the World Trade Organization,
undermine local decision-making. Corporations that use these institutions to support their own
corporate and financial interests, can exercise privileges that individuals and small businesses
cannot. Including the ability to move freely across borders, extract desired natural resources,
use a wide variety of human resources