Largest American oil and gas companies based on market value Ten largest American oil and gas companies based on market value in in billion U. The values are based on the Financial Times Equity list of the leading global companies. As of JuneAmerican oil and gas company Chevron reached a market value of some billion U.
Advocates of multinationals say they create high-paying jobs and technologically advanced goods in countries that otherwise would not have access to such opportunities or goods.
On the other hand, critics say multinationals have undue political influence over governments, exploit developing nations and create job losses in their own home countries. Generally speaking, multinational corporations will derive at least a quarter of their revenues outside their home country.
The Rise of the Multinational Corporation The history of the multinational is linked with the history of colonialism. Many of the first multinationals were commissioned at the behest of European monarchs in order to conduct expeditions.
One of the first arose in The East India Company, founded by the British. It was headquartered in London, and took part in international trade and exploration, with trading posts in India. Categories of Multinationals There are four categories of multinationals that exist. For instance, a transnational — which is one type of multinational — may have its home in at least two nations and spreads out its operations in many countries for a high level of local response.
Nestle is an example of a transnational corporation that executes business and operational decisions in and outside of its headquarters.
Meanwhile, a multinational enterprise controls and manages plants in at least two countries. This type of multinational will take part in foreign investment, as the company invests directly in host country plants in order to stake an ownership claim, thereby avoiding transaction costs.
Apple is a great example of a multinational enterprise, as it tries to maximize cost advantages through foreign investments in international plants.
Wal-Mart has operations in 28 countries, including over 11, retail stores that employ over 2. Advantages and Disadvantages of Multinationals There are a number of advantages to establishing international operations.
Having a presence in a foreign country such as India allows a corporation to meet Indian demand for its product without the transaction costs associated with long-distance shipping.
Corporations tend to establish operations in markets where their capital is most efficient or wages are lowest. By producing the same quality of goods at lower costs, multinationals reduce prices and increase the purchasing power of consumers worldwide. Establishing operations in many different countries, a multinational is able to take advantage of tax variations by putting in its business officially in a nation where the tax rate is low — even if its operations are conducted elsewhere.
The other benefits include spurring job growth in the local economies and that it may increase the company's tax revenues. A trade-off of globalizationor the price of lower prices, is that domestic jobs are susceptible to moving overseas. This data underscores how important it is for an economy to have a mobile or flexible labor force, so that fluctuations in economic temperament aren't the cause of long-term unemployment.
In this respect, education and the cultivation of new skills that correspond to emerging technologies are integral to maintaining a flexible, adaptable workforce.
A few of the fastest-growing industries in the United States are peer-to-peer lending platforms, medical marijuana stores, telehealth services and motion capture software development; together, these industries are replacing many of the American jobs that were displaced by overseas manufacturing.
Those opposed to multinationals say they are a way for the corporations to develop a monopoly for certain productsdriving up prices for consumers. The introduction of multinationals into a host country's economy may also lead to the downfall of smaller, local businesses.
Activists have also claimed that multinationals breach ethical standards, accusing them of evading ethical laws and leveraging their business agenda with capital.Franchises Franchises in foreign countries operate similarly to those in the United States.
A foreign affiliate will purchase a license from your company to use your brand in a foreign country. The logistics and transportation industry in the United States is highly competitive. By investing in this sector, multinational firms position themselves to better facilitate the flow of goods throughout the world's largest consumer market.
The logistics and transportation industry in the United States is highly competitive. By investing in this sector, multinational firms position themselves to better facilitate the flow of goods throughout the world's largest consumer market.
Pages in category "Multinational companies headquartered in the United States" The following pages are in this category, out of total. This list may not reflect recent changes (learn more).
U.S. Corporations' Repatriation of Offshore Profits.
Michael Smolyansky, Gustavo Suarez, and Alexandra Tabova 1. Abstract: We investigate how companies with large holdings of cash abroad have used those funds following the Tax Cuts and Jobs Act, which eliminated prior tax disincentives on the repatriation of foreign earnings.
Worldwide employment by U.S. multinational enterprises (MNEs) increased percent to million workers (preliminary) in from million (revised) in , according to statistics released by the Bureau of Economic Analysis on the operations and finances of U.S.
parent companies and their.