What is a global corporation?

Global corporation is an incorporated institution that operates in more than one country. The company is only one type of business, but usually has a structure contributes to international expansion. Corporations generally extend to foreign countries to sell products more people, hire cheaper work, or get easier access to natural resources. Tax laws in a foreign country can also make a more favorable place where business operations can be performed.

In addition to corporations, there are other types of businesses. The only property is the financial entity operated and owned by the only individual who is responsible for all debts incurred by the company. The partnership is similar to exclusive ownership, but together they are owned by several people. However, neither the exclusive ownership nor the partnership is likely to work worldwide, as they generally lack the structure necessary for extensive investments and growth. Corporation, on the other ha is given a legal personality separated from its owners and may allowIT shareholders to own parts of business.

One of the reasons why global corporations may decide to work in new countries is to achieve new markets. The population of most countries is small compared to the world's population. Once the domestic market is fully utilized, the corporation can turn to the unused market in another country. The American and European Society, which sells its products in other parts of the world, is an example of a global corporation looking for this goal.

Cheaper work available is another motivation for the company for employing workers abroad. Although most high -level decisions can be taken in the home country of corporations, production or job -intensive jobs can be awarded to less developed countries. The work generally does not require extensive training and therefore appreciation for employing work is an hourly payment rate. Many countries have workers who will workVat for less than minimum wages of developed countries. Savings arising from global corporations that use cheaper work provide economic motivation to operate abroad.

Corporations can also expand worldwide by accessing natural resources with fewer obstacles than in their home countries. Developed countries often have effective laws governing the use of natural resources such as oil, precious metals, wood and wild animals. Many other countries that may have corrupt leaders who accept bribes do not have such strongly forced laws. Despite some other obstacles to international entrepreneurship, global corporations can be used to use, register or fish in other countries.