A multi-national enterprise is typically a business corporation whose operations literally straddle the globe. An example is PepsiCo. PepsiCo does not ship its famous product around the world directly from the United States. Instead, it produces Pepsi Cola in over 600 plants in 148 countries around the world. A multi-national enterprise typically has substantial portions of its total wealth invested in production facilities outside of its country of origin. Because of the expanded activities of these corporations, international banks have grown, allowing the monies of international enterprises to pass quickly over national frontiers to take advantage of favorable interest rate changes in multi-national banking operations. A multi-national enterprise considers the entire world to be its potential market, not merely for shipping its home-produced goods, but a market within which it may actually manufacture its product.
By selling products to world markets a multi-national enterprise is able to profitably take advantage of different business situations in various countries such as lower wages, lower tax and tariff rates, less business regulation, and other business-friendly incentives. In this way, a multi-national enterprise is able to produce its products in countries where the wages are lower, and to sell their products in countries where people can often afford to pay higher prices for it. The multi-national enterprise meets the international demand for products, resulting in business profitability and consumer satisfaction at the same time.
See also: General Agreement on Tariffs and Trade (GATT), Free Trade
"Multi-National Enterprise." Gale Encyclopedia of U.S. Economic History. . Encyclopedia.com. (November 17, 2018). https://www.encyclopedia.com/history/encyclopedias-almanacs-transcripts-and-maps/multi-national-enterprise
"Multi-National Enterprise." Gale Encyclopedia of U.S. Economic History. . Retrieved November 17, 2018 from Encyclopedia.com: https://www.encyclopedia.com/history/encyclopedias-almanacs-transcripts-and-maps/multi-national-enterprise
Encyclopedia.com gives you the ability to cite reference entries and articles according to common styles from the Modern Language Association (MLA), The Chicago Manual of Style, and the American Psychological Association (APA).
Within the “Cite this article” tool, pick a style to see how all available information looks when formatted according to that style. Then, copy and paste the text into your bibliography or works cited list.
Because each style has its own formatting nuances that evolve over time and not all information is available for every reference entry or article, Encyclopedia.com cannot guarantee each citation it generates. Therefore, it’s best to use Encyclopedia.com citations as a starting point before checking the style against your school or publication’s requirements and the most-recent information available at these sites:
Modern Language Association
The Chicago Manual of Style
American Psychological Association
- Most online reference entries and articles do not have page numbers. Therefore, that information is unavailable for most Encyclopedia.com content. However, the date of retrieval is often important. Refer to each style’s convention regarding the best way to format page numbers and retrieval dates.
- In addition to the MLA, Chicago, and APA styles, your school, university, publication, or institution may have its own requirements for citations. Therefore, be sure to refer to those guidelines when editing your bibliography or works cited list.