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62-455: Aditya Birla Group is an Indian multinational conglomerate , headquartered in Mumbai . The group's business interests include metals , cement , fashion and retail, financial services , renewables , fibre , textiles , chemicals , real estate , trading , mining , and entertainment . The group has a presence in 36 nations and a combined annual revenue of US$ 62 billion, over 50% of which

124-766: A basis in a national ethos , being ultimate without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards . In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefits capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality , unemployment , and wage stagnation . Raymond Vernon presents

186-480: A business family, he began his career in the family's trading business. He expanded into various industries like jute , cotton , and textiles . G.D. Birla established multiple manufacturing businesses that laid the foundation for the Aditya Birla Group. He was recognized for his charitable acts and his connection with Mahatma Gandhi . Aditya Vikram Birla (1943–1995), the grandson of G.D. Birla, grew

248-608: A capacity of about 125,000 tonnes. Carbon Black: Birla Carbon produces and supplies carbon black additives for tires, plastics, paints, and electronics. It has manufacturing units in Marietta and Taloja . Chemicals: Established in 1984, Aditya Birla Chemicals produces chlor-alkali and caustic soda , with 8 units in India and 1 in Thailand. Financial Services: Aditya Birla Capital manages around Rs. 3.6 trillion AUM and has

310-508: A corporation invests in a country in which it is not domiciled, it is called foreign direct investment (FDI). Countries may place restrictions on direct investment; for example, China has historically required partnerships with local firms or special approval for certain types of investments by foreigners, although some of these restrictions were eased in 2019. Similarly, the United States Committee on Foreign Investment in

372-429: A free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services. To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to

434-513: A lending book of about Rs. 943 billion as of 31 March 2023, through its subsidiaries and joint ventures. Fashion and Retail: A fashion and lifestyle company headquartered in India, Aditya Birla Fashion and Retail Ltd. (ABFRL) was renamed from Pantaloons in 2015 after Aditya Birla Nuvo acquired major stakes in 2012. Insulators: Aditya Birla Insulators is India's largest and the world's third-largest insulator manufacturer. Renewables: Founded in 2011, Aditya Birla Renewables Limited (ABRL), ABReL

496-490: A million troops to help, and by February 1991, Iraqi forces were expelled from Kuwait. Due to the oil boycott from Kuwait and Iran, oil prices rose and quickly recovered. Saudi Arabia once again led OPEC, and thanks to assistance in defending Kuwait, new relations emerged between the USA and OPEC. Operation "Desert Storm" brought mutual dependence among the main oil producers. OPEC continued to influence global oil prices but recognized

558-756: A £15mn scholarship program at the London Business School in memory of his grandfather, Basant Kumar Birla . The group accesses government schemes like the Sarva Shiksha Abhiyan , MGNREGA , Pradhan Mantri Gram Sadak Yojana , Pradhan Mantri Awas Yojana , National Rural Livelihood Mission (NRLM), Swachh Bharat Mission , National Rural Drinking Water Program, Pradhan Mantri Kaushal Vikas Yojana , Renewable Energy Development Program, Integrated Child Development Services , National TB Elimination Program and Swarnjayanti Gram Swarojgar Yojana . Multinational corporation Most of

620-481: Is a leading provider of solar, wind, and hybrid power solutions to public and private-sector customers across India. It operates 2.3 GW renewable capacity in 9 Indian states and announced 4.5 GW by FY2026 through utility and commercial projects. Mining: The group has mineral resource operations through its subsidiary Essel Mining Industries Ltd. Telecom: The group has a presence in the telecom sector through its joint venture, Vodafone Idea . Besides these sectors,

682-535: Is derived from its overseas operations. Aditya Birla Group has seven companies that are listed publicly, and their total market capitalisation as of March 2024 is over $ 100 billion. Notable group companies include UltraTech Cement , Hindalco , Novelis , Grasim , Aditya Birla Capital , Aditya Birla Fashion and Retail and Vodafone Idea . The group's origins are associated with three individuals: Ghanshyam Das Birla (G.D. Birla), Aditya Birla and Kumar Mangalam Birla . Ghanshyam Das Birla (1894–1983), born into

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744-410: Is often handled through international arbitration . The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in

806-865: Is usually a large corporation incorporated in one country that produces or sells goods or services in various countries. Two common characteristics shared by MNCs are their large size and centrally controlled worldwide activities. MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial experience globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries and gain access to special R&D capabilities residing in advanced foreign countries. The problem of moral and legal constraints upon

868-796: The Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include the Swedish Africa Company founded in 1649 and the Hudson's Bay Company founded in 1670. These early corporations engaged in international trade and exploration and set up trading posts. The Dutch government took over

930-510: The Government of India ordered the company to convert its interest dues worth 161.33 billion Indian Rupees ($ 1.96 billion) to equity at the rate of 10 rupees per share face value (well over then market value ~8.5), thus making the government the single biggest shareholder in the company. Vodafone Idea owns spectrum in 868 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3500 MHz and 26 GHz bands across

992-737: The country . This table contains Vodafone Idea radio frequency details because they had integrated their networks with each other and using one anchor network for both brands in all respective telecom circles. For example, Idea has started 4G services in Delhi and Kolkata telecom circle from May 2018 where the Vodafone is anchor network vice versa Vodafone has Started 4G services in Madhya Pradesh & Chhattisgarh , Bihar & Jharkhand , Andhra Pradesh & Telangana , Himachal Pradesh and Jammu and Kashmir telecom Circle's where Idea

1054-670: The 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from the Spanish government. Rio Tinto, now based in London and Melbourne , Australia, has made many acquisitions and expanded globally to mine aluminum , iron ore , copper , uranium , and diamonds . European mines in South Africa began opening in the late 19th century, producing gold and other minerals for

1116-676: The Aditya Birla Public Health Initiative, and Project Unnati. The group operates 24 hospitals and runs 6,000 medical camps in India. Kumar Mangalam Birla and his family ranked fourth on the EdelGive Hurun India Philanthropy List in 2021 and 2022, donating INR 377 crore and INR 242 crore respectively. The Aditya Birla Group donated INR 500 crore to the PM CARES Fund in 2020. In 2019, Kumar Mangalam Birla created

1178-551: The English language. Senior officials, although mostly still Swedish, all learned English and all major internal documents were in English, the lingua franca of multinational corporations. After the war, the number of businesses having at least one foreign country operation rose drastically from a few thousand to 78,411 in 2007. Meanwhile, 74% of parent companies are located in economically advanced countries. Developing and former communist countries such as China, India, and Brazil are

1240-575: The International Energy Agency (IEA), enabling states to coordinate policy, gather data, and monitor global oil reserves. In the 1970s, OPEC gradually nationalized the Seven Sisters. The Kingdom of Saudi Arabia, as the only largest world oil producer, could leverage this. However, Saudi Arabia opted for the correct approach and maintained consistent oil prices throughout the 1970s. In 1979, the "second oil shock" came from

1302-574: The Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States. Corporations can legally engage in tax avoidance through their choice of jurisdiction but must be careful to avoid illegal tax evasion . Corporations that are broadly active across

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1364-558: The OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example: Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963,

1426-464: The Third World colonies. That changed dramatically after 1945 as investors turned to industrialized countries and invested in manufacturing (especially high-tech electronics, chemicals, drugs, and vehicles) as well as trade. Sweden's leading manufacturing concern was SKF , a leading maker of bearings for machinery. In order to expand its international business, it decided in 1966 it needed to use

1488-636: The U.S. applies its corporate taxation "extraterritorially", which has motivated tax inversions to change the home state. By 2019, most OECD nations, with the notable exception of the U.S., had moved to territorial tax in which only revenue inside the border was taxed; however, these nations typically scrutinize foreign income with controlled foreign corporation (CFC) rules to avoid base erosion and profit shifting . In practice, even under an extraterritorial system, taxes may be deferred until remittance, with possible repatriation tax holidays , and subject to foreign tax credits . Countries generally cannot tax

1550-541: The United States sanctions against Iran ; European companies faced with the possibility of losing access to the U.S. market by trading with Iran. International investment agreements also facilitate direct investment between two countries, such as the North American Free Trade Agreement and most favored nation status. Raymond Vernon reported in 1977 that of the largest multinationals focused on manufacturing, 250 were headquartered in

1612-506: The United States scrutinizes foreign investments. In addition, corporations may be prohibited from various business transactions by international sanctions or domestic laws. For example, Chinese domestic corporations or citizens have limitations on their ability to make foreign investments outside China, in part to reduce capital outflow . Countries can impose extraterritorial sanctions on foreign corporations even for doing business with other foreign corporations, which occurred in 2019 with

1674-614: The United States as the largest consumer and guarantor of the existing oil security order. Since the Iraq War, OPEC has had only a minor influence on oil prices, but it has expanded to 11 members, accounting for about 40 percent of total global oil production, although this is a decline from nearly 50 percent in 1974. Oil has practically become a common commodity, leading to much more volatile prices. Most OPEC members are wealthy, and most remain dependent on oil revenues, which has serious consequences, such as when OPEC members were pressured by

1736-461: The United States from 2010. The USA became the leading oil producer, creating tension with OPEC. In 2014, Saudi Arabia increased production to push new American producers out of the market, leading to lower prices. OPEC then reduced production in 2016 to raise prices, further worsening relations with the United States. By 2012, only 7% of the world's known oil reserves were in countries that allowed private international companies free rein; 65% were in

1798-629: The United States, 115 in Western Europe, 70 in Japan, and 20 in the rest of the world. The multinationals in banking numbered 20 headquartered in the United States, 13 in Europe, nine in Japan and three in Canada. Today multinationals can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile ; The Economist suggests that

1860-766: The VOC in 1799, and during the 19th century, other governments increasingly took over private companies, most notably in British India. During the process of decolonization , the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company , dissolving in 1972. Mining of gold, silver, copper, and oil was a major activity early on and remains so today. International mining companies became prominent in Britain in

1922-507: The West to the post-colonial South and invest either in foreign expenditures or ostentatious economic development projects. After 1974, most of the money from OPEC members ceased as payments for goods and services or investments in Western industry. In February 1974, the first Washington Energy Conference was convened. The most significant contribution of this conference was the establishment of

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1984-469: The behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that has emerged during the late twentieth century. Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week ,

2046-742: The collapse of the Shah's regime in Iran. Iran became a regional power due to oil money and American weapons. The Shah eventually abdicated and fled the country. This prompted a strike by thousands of Iranian oil workers, significantly reducing oil production in Iran. Saudi Arabia tried to cope with the crisis by increasing production, but oil prices still soared, leading to the "second oil shock." Saudi Arabia significantly reduced oil production, losing most of its revenues. In 1986, Riyadh changed course, and oil production in Saudi Arabia sharply increased, flooding

2108-654: The companies. This occurred in 1960. Prior to the 1973 oil crisis , the Seven Sisters controlled around 85 percent of the world's petroleum reserves . In the 1970s, most countries with large reserves nationalized their reserves that had been owned by major oil companies. Since then, industry dominance has shifted to the OPEC cartel and state-owned oil and gas companies, such as Saudi Aramco , Gazprom (Russia), China National Petroleum Corporation , National Iranian Oil Company , PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Malaysia). A unilateral increase in oil prices

2170-510: The conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management , and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations, we are some quarter-century into an era of stateless corporations—corporations that meet

2232-643: The creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself. "Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as

2294-487: The current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were the British East India Company founded in 1600 and

2356-636: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Vodafone Idea Vodafone Idea , in acronym Vi , is an Indian telecommunications company , headquartered in Mumbai and Gandhinagar . It is an all-India integrated GSM operator offering mobile telephony services. As of 30 September 2024, Vi has a subscriber base of 212.45 million, making it third largest mobile telecommunications network in India and 12th largest mobile telecommunications network in

2418-805: The final nod to the Vodafone-Idea merger. It was completed on 31 August 2018, and the new entity was named Vodafone Idea. Under the terms of the deal, the Vodafone Group Plc held a 45.2% stake in the combined entity, the Aditya Birla Group held 26% and the remaining shares were to be held by the public. Vodafone Idea lost a significant number of gross and active subscribers in the month of August 2020. Until 7 September 2020, Vodafone Idea operated two separate brands: Vodafone India and Idea Cellular who both operated pre-paid and post-paid GSM service. On 3 February 2023,

2480-481: The firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs . Sanjaya Lall in 1974 proposed a spectrum of scholarly analysis of multinational corporations, from the political right to the left. He put the business school how-to-do-it writers at the extreme right, followed by the liberal laissez-faire economists, and the neoliberals (they remain right of center but do allow for occasional mistakes of

2542-647: The group has also ventured into paints, e-commerce for building materials, and DTC retail via TMRW. The Aditya Birla Group's welfare-driven activities are overseen by the Aditya Birla Centre for Community Initiatives and Rural Development, which is chaired by Rajashree Birla . The group's corporate social responsibility initiatives focus on healthcare , education , sustainable livelihood programs , infrastructure development, and social reforms through model villages. The group implemented programs in partnership with NGOs and government agencies, including

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2604-509: The group's operations. At 24, Aditya Birla began establishing businesses abroad. In 1969, he founded 19 companies in Thailand , Malaysia , Indonesia , Philippines , and Egypt . Under his leadership, the group diversified into multiple sectors such as metals , cement , textiles , and telecom . Kumar Mangalam Birla (1967-current), became the chairman of the Aditya Birla Group in 1995, succeeding his late father Aditya Vikram Birla when he

2666-416: The hands of state-owned companies that operated in one country and sold oil to multinationals such as BP, Shell, ExxonMobil and Chevron. Down through the 1930s, about 80% of the international investments by multinational corporations were concentrated in the primary sector, especially mining (especially oil) and agriculture (rubber, tobacco, sugar, palm oil , coffee, cocoa, and tropical fruits). Most went to

2728-576: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by

2790-415: The internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies. International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm . The latter is also known as

2852-460: The largest recipients. However, 70% of foreign direct investment went into developed countries in the form of stocks and cash flows. The rise in the number of multinational companies could be due to a stable political environment that encourages cooperation, advances in technology that enable management of faraway regions, and favorable organizational development that encourages business expansion into other countries. A multinational corporation (MNC)

2914-474: The laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control". As of 1992 , the United States and most OECD countries have the donot legal authority to tax a domiciled parent corporation on its worldwide revenue, including subsidiaries. As of 2019 ,

2976-494: The market with cheap oil. This caused a worldwide drop in oil prices, hence the "third oil shock" or "counter-shock." However, this shock represented something much bigger—the end of OPEC's dominance and its control over oil prices. Iraqi President Saddam Hussein decided to attack Kuwait. The invasion sparked a crisis in the Middle East, prompting Saudi Arabia to request assistance from the United States. The United States sent

3038-543: The marketplace such as externalities). Moving to the left side of the line are nationalists, who prioritize national interests over corporate profits, then the "dependencia" school in Latin America that focuses on the evils of imperialism, and on the far left the Marxists. The range is so broad that scholarly consensus is hard to discern. Anti-corporate advocates criticize multinational corporations for being without

3100-560: The price collapse in 1998–1999. The United States still maintains close relations with Saudi Arabia. In 2003, U.S. forces invaded Iraq with the aim of removing the dictatorship and gaining access to Iraqi oil reserves, giving the United States greater strategic importance from 2000 to 2008. During this period, there was a constant shortage of oil, but its consumption continued to rise, maintaining high prices and leading to concerns about "peak oil". From 2005 to 2012, there were advances in oil and gas extraction, leading to increased production in

3162-611: The realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries. One of the first multinational business organizations, the East India Company , was established in 1601. After the East India Company came the Dutch East India Company , founded on March 20, 1603, which would become the largest company in the world for nearly 200 years. The main characteristics of multinational companies are: When

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3224-501: The strong influence of the United States on the global oil market. In 1959, companies lowered the price of oil due to a surplus in the market. This reduction dealt a significant blow to the finances of producers. Saudi oil minister Abdullah Tariki and Venezuela’s Juan Perez Alfonso entered into a secret agreement (the Mahdi Pact), promising that if the price of oil was lowered a second time, they would take collective action against

3286-571: The world . Vodafone Idea was created on 31 August 2018 by the merger of Vodafone India and Idea Cellular . On 20 September 2020, the two separate brands Vodafone India and Idea Cellular rebranded as Vodafone Idea (Vi). In March 2017, it was announced that Vodafone India and Idea Cellular would merge . The merger got approval from the Department of Telecommunications in July 2018. On 30 August 2018, National Company Law Tribunal gave

3348-496: The world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902) was one of the few businessmen in the era who became Prime Minister (of South Africa 1890–1896). His mining enterprises included the British South Africa Company and De Beers . The latter company practically controlled the global diamond market from its base in southern Africa. In 1945, the United States

3410-573: The world without a concentration in one area have been called stateless or "transnational" (although "transnational corporation" is also used synonymously with "multinational corporation" ), but as of 1992, a corporation must be legally domiciled in a particular country and engage in other countries through foreign direct investment and the creation of foreign subsidiaries. Geographic diversification can be measured across various domains, including ownership and control, workforce, sales, and regulation and taxation. Multinational corporations may be subject to

3472-598: The world's largest aluminum rolling company and a major producer of primary aluminum in Asia. Its subsidiary, Birla Copper, operates Asia's largest single-site copper smelter. Cement : The group is the third-largest cement producer globally (excluding China) and the largest in India. It operates under the brand name UltraTech Cement . Textiles: Aditya Birla Textiles consists of Textiles ( linen and wool ), acrylic fiber , and overseas spinning sectors, with manufacturing units across five countries. Its acrylic fibre business has

3534-503: The worldwide revenue of a foreign subsidiary, and taxation is complicated by transfer pricing arrangements with parent corporations. For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements. Disputes between corporations in different nations

3596-438: Was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for the seven multinational companies that dominated the global petroleum industry from the mid-1940s to the mid-1970s. The nationalization of the Iranian oil industry in 1951 by Iranian Prime Minister Mohammad Mosaddegh and the subsequent boycott of Iranian oil by all companies had dramatic consequences for Iran and

3658-448: Was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but

3720-621: Was just 28 years old. Under his leadership, the group's annual turnover grew from $ 2 billion in 1995 to $ 60 billion in 2022. The Aditya Birla Group operates across 36 countries in Asia, Europe, Africa, and the Americas. Metal : Hindalco founded in 1958. Its first real contribution to the vision of an industrial India occurred four years later, when the late visionary GD Birla set up India's first integrated aluminium facility at Renukoot. In 2007, Hindalco acquired Atlanta -based aluminum manufacturer Novelis Inc . for $ 6 billion. This made Hindalco

3782-546: Was labeled as "the largest nonviolent transfer of wealth in human history." The OPEC sought immediate discussions regarding participation in national oil industries. Companies were not inclined to object as the price hike benefited both them and OPEC members. In 1980, the Seven Sisters were entirely displaced and replaced by national oil companies (NOCs). The rise in oil prices burdened developing countries with balance of payments deficits, leading to an energy crisis. OPEC members had to abandon their plan of redistributing wealth from

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3844-513: Was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore, the United States turned to foreign oil sources, which had a significant impact on the recovery of the West after World War II. Most of the world's oil was found in Latin America and the Middle East, particularly in the Arab states of the Persian Gulf. This increase in non-American production

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