Nama :Haris Wirawan Cahyadi (20.0101.

0138)

Multinational companies

Definition of Multinational Companies Multinational companies (MNCs) are large companies that are
usually located in developed countries and have subsidiaries in various other countries, usually in
developing countries. Because this company conducts its business in various countries, the nature of its
business is global. So that it can have a strong influence on global political conditions. In general, in
various countries, these companies are developed as limited liability companies. However, the shares
are controlled by the parent company. The company's shares are not traded on the local stock market.
As a result of this ownership model, the overall operating policy of the company depends on the policy
of the parent company and some of the management of the company must come from the parent
company. Multinational companies have become increasingly important roles in the country since the
end of the second world war. Initially, multinational companies originated from the United States, which
ran operations in various countries such as Japan, countries in Europe and also Australia and New
Zealand. Since the 1960s, multinational companies not only belong to the United States but also belong
to Japan, Europe and several other developed countries and have started operating in developing
countries in Asia, Africa and Latin America. This development is one of the factors that create the era of
globalization in world economic activities.

Summary

Multinational companies are companies that operate in many countries. usually the parent company is
owned by developed countries and its subsidiaries are in developing countries. because it operates in
many countries, the multinational company is global. in each member country has shares but the largest
shares are still owned by the parent company . At first multinational companies started from America
but after the world war two multinational companies spread to Asia.