Multinationals - Business Environment

At the opposite end of the scale from the very small business are companies which have the capability to produce goods or services in more than one country but where control usually resides in a central location. Multinationals are often well known household names, as the examples below illustrate:

  • UK multinationals BP, Glaxosmithkline.
  • European multinationals Nestlé, Volkswagen.
  • USA multinationals General Motors, IBM.

These multinationals are huge organisations and their market values often exceed the GNP of many of the countries in which they operate. They are estimated to account for a quarter of the world’s output.The growth in the multinationals is due to relaxation of exchange controls making it easier to move money between countries, and the improvements in communication which make it possible to run a worldwide business from one country.


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