This document discusses globalization and multinational enterprises. It covers key topics like:
- The definition of a multinational enterprise as one with foreign subsidiaries or affiliates. Transnational corporations have especially dispersed international ownership.
- Multinational business finance emphasizes multinationals but domestic firms also have international activities through imports/exports, foreign licensing, and exposure to global competition and risks.
- Global business success requires an open marketplace, strong strategic management, and access to capital. International trade can be explained by theories of comparative advantage based on country differences in resources and efficiencies.
- Market imperfections provide opportunities for multinationals to exploit economies of scale, expertise, product differentiation, and financial