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93-532: GSK plc (an acronym from its former name GlaxoSmithKline plc ) is a British multinational pharmaceutical and biotechnology company with headquarters in London . It was established in 2000 by a merger of Glaxo Wellcome and SmithKline Beecham, which was itself a merger of a number of pharmaceutical companies around the Smith, Kline & French firm. GSK is the tenth largest pharmaceutical company and No. 294 on

186-457: A 10% stake in German biotech company CureVac . In March 2018, GSK announced that it has reached an agreement with Novartis to acquire Novartis's 36.5% stake in their Consumer Healthcare Joint Venture for US$ 13   billion (£9.2   billion). In December 2018, GSK announced that it, along with Pfizer , had reached an agreement to merge and combine their consumer healthcare divisions into

279-576: A German biotech company, for US$ 98   million, and in June, worldwide rights to alitretinoin (Toctino), an eczema drug, for US$ 302   million. In 2013, GSK acquired Human Genome Sciences (HGS) for US$ 3   billion; the companies had collaborated on developing the lupus drug Belimumab (Benlysta), albiglutide for type 2 diabetes , and darapladib for atherosclerosis , and in September, sold its beverage division to Suntory . This included

372-513: A Medicines Research Centre in Stevenage , Hertfordshire . Also that year, Glaxo Wellcome acquired the California -based Affymax, a leader in the field of combinatorial chemistry . By 1999, Glaxo Wellcome had become the world's third-largest pharmaceutical company by revenues (behind Novartis and Merck), with a global market share of around 4 per cent. Its products included Imigran (for

465-678: A Swiss pharmaceutical company, for US$ 190   million, and in June that year that it would sell two meningitis drugs to Pfizer , Nimenrix and Mencevax for around US$ 130   million. Philip Hampton , at that time chair of the Royal Bank of Scotland , became GSK chairman in September 2015. On 31 March 2017, Emma Walmsley became CEO . She is the first female CEO of the company. In December 2017, Reuters reported that Glaxo had increased its stake in its Saudi Arabian unit to 75% (from 49%) taking over control from its Saudi partner Banaja KSA Holding Company. With respect to rare diseases ,

558-508: A US$ 660-million deal, Prestige Brands Holdings took over 17 GSK brands with sales of US$ 210   million, including BC Powder , Beano , Ecotrin , Fiber Choice, Goody's Powder , Sominex and Tagamet . In 2012, the company announced that it would invest £500   million in manufacturing facilities in Ulverston , northern England, designating it as the site for a previously announced biotech plant. In May that year it acquired CellZome,

651-766: 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

744-767: A business doing research into animal health, and Recherche et Industrie Thérapeutiques in Belgium in 1963, to focus on vaccines. The company began to expand globally, buying seven laboratories in Canada and the United States in 1969. In 1982, it bought Allergan , a manufacturer of eye and skincare products. Smith Kline & French merged with Beckman Inc. in 1982, and changed its name to SmithKline Beckman . In 1988, it bought International Clinical Laboratories. In 1989, SmithKline Beckman merged with Beecham Group to form SmithKline Beecham P.L.C. . The headquarters moved from

837-508: 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

930-423: A demerger and subsequent listing of the joint venture. This will create two publicly traded companies, one focusing on pharmaceuticals and research & development, the other on consumer healthcare. On 22 February 2022, GSK announced that the spin-off consumer healthcare company will be called Haleon . In January 2022, the company announced that they had received three unsolicited offers from Unilever to acquire

1023-429: 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

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1116-490: 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

1209-507: A number of tranches. The same day, the company also announced it would acquire oncology specialist, Tesaro , for US$ 5.1   billion. The deal will give GSK control of ovarian cancer treatment, Zejula - a member of the class of poly ADP ribose polymerase (PARP) inhibitors. In October 2019, GSK agreed to sell its rabies vaccine, RabAvert , and its tick-borne encephalitis vaccine, Encepur , to Bavarian Nordic for US$ 1.06   billion (€955   million). In July 2020, GSK acquired

1302-570: A share of his wealth which amounted to six guineas each. Following his death a Burroughs scholarship was created and administered by the Royal Pharmaceutical Society . Burroughs' widow Olive tried to retain an interest in the firm however Wellcome exercised his right to buy the share outright. It wasn't until 1924 that Wellcome changed the name of the firm to the Wellcome Foundation Limited such

1395-660: A single entity. The combined entity would have sales of around £9.8   billion ($ 12.7   billion), with GSK maintaining a 68% controlling stake in the joint venture. Pfizer would own the remaining 32% shareholding. The deal builds on an earlier 2018 deal where GSK bought out Novartis' stake in the GSK-Novartis consumer healthcare joint business. The culmination of the Consumer Healthcare string of deals will result in GSK splitting into two separate companies, via

1488-410: 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

1581-678: Is the United States. Its US headquarters are in Philadelphia, Pennsylvania and Durham, North Carolina; its consumer-products division is in Moon Township, Pennsylvania . In July 2020, the UK government signed up for 60 million doses of a COVID-19 vaccine developed by GSK and Sanofi . It uses a recombinant protein –based technology from Sanofi and GSK's pandemic technology. The companies claimed to be able to produce one billion doses, subject to successful trials and regulatory approval, during

1674-865: 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

1767-739: The Beecham Group . In 1859, Beecham opened its first factory in St Helens , Lancashire . By the 1960s, Beecham was extensively involved in pharmaceuticals and consumer products such as Macleans toothpaste , Lucozade and synthetic penicillin research. John K. Smith opened his first pharmacy in Philadelphia in 1830. In 1865, Mahlon Kline joined the business, which 10 years later became Smith, Kline & Co. In 1891, it merged with French, Richard and Company, and in 1929, changed its name to Smith Kline & French Laboratories as it focused more on research. Years later it bought Norden Laboratories,

1860-477: The Department of Health and Human Services (HHS-OIG), FDA and FBI , primarily concerning sales and marketing of the drugs Avandia , Paxil and Wellbutrin , GSK pleaded guilty to promotion of drugs for unapproved uses, failure to report safety data and kickbacks to physicians in the United States and agreed to pay a US$ 3   billion (£1.9bn) settlement. It was the largest health-care fraud case to date in

1953-743: The Lucozade and Ribena brands of soft drinks, but they were sold in 2013, to Suntory for £1.35bn. Other products include Abreva to treat cold sores; Night Nurse, a cold remedy; Breathe Right nasal strips ; and Nicoderm and Nicorette nicotine replacements. In March 2014, it recalled Alli , an over-the-counter weight-loss drug, in the United States and Puerto Rico because of possible tampering, following customer complaints. As of 2013, GSK had offices in over 115 countries and employed over 99,000 people, 12,500 in R&;D . The company's single largest market

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2046-644: 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 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 ,

2139-781: 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 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

2232-542: The 2022 Fortune Global 500 , ranked behind other pharmaceutical companies China Resources , Sinopharm , Johnson & Johnson , Pfizer , Roche , AbbVie , Novartis , Bayer , and Merck Sharp & Dohme . The company has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index . As of February 2024, it had a market capitalisation of £69 billion, the eighth largest on

2325-725: The Consumer Healthcare business unit, with the final proposal valuing the business unit at £50 billion (£41.7 billion in cash, plus £8.3 billion in Unilever shares). Subsequently, GSK declined all outside offers/attempts to acquire its consumer healthcare business and moved forward with its plan to complete the demerger from the main biopharmaceutical business. In April 2022, the business announced it would acquire Sierra Oncology Inc for $ 1.9 billion ($ 55 per share). In May 2022, GSK announced it would acquire Affinivax and its phase II 24-valent pneumococcal vaccine candidate for up to $ 3.3 billion, strengthening its vaccine business. On 16 May 2022,

2418-551: 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

2511-663: 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 the 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from

2604-685: The FDA approved GSK's vaccine for 2009 H1N1 influenza protection, manufactured by the company's ID Biomedical Corp in Canada. Also in November 2009, GSK formed a joint venture with Pfizer to create ViiV Healthcare , which specializes in HIV research. In 2010, the company acquired Laboratorios Phoenix, an Argentine pharmaceutical company, for US$ 253m, and the UK-based sports nutrition company Maxinutrition for £162   million (US$ 256   million). In 2011, in

2697-666: The Global Access to Medicines Index, which is funded by the Bill and Melinda Gates Foundation . In 2014, the Human Rights Campaign , an LGBT -rights advocacy group gave GSK a score of 100 per cent in its Corporate Equality Index . Multinational corporation Most of the current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with

2790-575: 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

2883-705: The London Stock Exchange. The company developed the first malaria vaccine , RTS,S , which it said in 2014, it would make available for five per cent above cost. Legacy products developed at GSK include several listed in the World Health Organization's List of Essential Medicines , such as amoxicillin , mercaptopurine , pyrimethamine and zidovudine . In 2012, under prosecution by the United States Department of Justice (DoJ) based on combined investigations of

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2976-511: 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

3069-558: 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,

3162-586: 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 the world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902)

3255-464: 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

3348-636: 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

3441-525: The US and the largest settlement in the pharmaceutical industry . Joseph Nathan and Co. was founded in 1873, as a general trading company in Wellington , New Zealand, by a Londoner, Joseph Edward Nathan . In 1904, it began producing a dried-milk baby food from excess milk produced on dairy farms near Bunnythorpe . The resulting product was first known as Defiance, then as Glaxo (from lacto ), and sold with

3534-584: The US headquarters until the company moved to Research Triangle Park in North Carolina in 1971. The Nobel Prize winning scientists Gertrude B. Elion and George H. Hitchings worked there and invented drugs still used many years later, such as mercaptopurine . In 1959, the Wellcome Foundation bought Cooper, McDougall & Robertson Inc to become more active in animal health. When Burroughs Wellcome decided to move its headquarters,

3627-658: The US market. In 1983, the American arm, Glaxo Inc., moved to Research Triangle Park (US headquarters/research) and Zebulon (US manufacturing) in North Carolina . Burroughs Wellcome & Company was founded in 1880, in London by the American pharmacists Henry Wellcome and Silas Burroughs . The Wellcome Tropical Research Laboratories opened in 1902. In the 1920s, Burroughs Wellcome established research and manufacturing facilities in Tuckahoe, New York , which served as

3720-541: 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

3813-506: 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

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3906-614: 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

3999-461: 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

4092-477: 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

4185-632: The United States to England. To expand R&D in the United States, the company bought a new research center in 1995; another opened in 1997, in England at New Frontiers Science Park , Harlow . Glaxo Wellcome and SmithKline Beecham announced their intention to merge in January 2000. The merger was completed on 27 December that year, forming GlaxoSmithKline (GSK). The company's global headquarters were at GSK House, Brentford , London, officially opened in 2002, by then-Prime Minister Tony Blair . The building

4278-696: 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 was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for

4371-576: 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

4464-456: 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

4557-469: 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 ,

4650-514: The brands Lucozade and Ribena ; however, the deal did not include Horlicks . In March 2014, GSK paid US$ 1   billion to raise its stake in its Indian pharmaceutical unit, GlaxoSmithKline Pharmaceuticals , to 75 per cent as part of a move to focus on emerging markets. In April 2014, Novartis and Glaxo agreed on more than US$ 20   billion in deals, with Novartis selling its vaccine business to GSK and buying GSK's cancer business. In February 2015, GSK announced that it would acquire GlycoVaxyn,

4743-604: The business unit as they look to strengthen their presence in India. On 3 December 2018, GSK announced that Unilever would acquire the Indian-listed GlaxoSmithKline Consumer Healthcare business for US$ 3.8   billion (£2.98   billion). Unilever will pay the majority of the deal in cash, with the remaining being paid in shares in its Indian operation, Hindustan Unilever Limited . Upon completion, GSK will then own around 5.7% of Hindustan Unilever Limited, selling those shares in

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4836-742: 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

4929-654: 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

5022-641: The company aligned with GSK's business. In September 2019, Avalon Ventures announced that it entered into a definitive agreement with GlaxoSmithKline (GSK) for the acquisition of Sitari Pharmaceuticals by GSK. This includes its transglutaminase 2 (TG2) small molecule program for the treatment of celiac disease . Four GlaxoSmithKline scientists have been recognized by the Nobel Committee for their contributions to basic medical science and/or therapeutics development. Since 2010, GlaxoSmithKline has several times ranked first among pharmaceutical companies on

5115-1297: The company changed its name from GlaxoSmithKline to GSK. In April 2023, GSK announced it would acquire Bellus Health Inc. for $ 2 billion. In February 2024, the company acquired Aiolos Bio for over $ 1 billion, adding to its existing asthma business through AIO-001 a long-acting monoclonal antibody that targets the thymic stromal lymphopoietin cytokine. In May 2024, GSK sold off its 4.2% shares in Haleon for $ 1.58 billion. In July 2024, GSK moved its headquarters from Brentford to New Oxford Street in central London. GSK manufactures products for major disease areas such as asthma, cancer, infections, diabetes, and mental health. Medicines historically discovered or developed at GSK and its legacy companies and now sold as generics include amoxicillin and amoxicillin-clavulanate , ticarcillin-clavulanate , mupirocin , and ceftazidime for bacterial infections, zidovudine for HIV infection , valacyclovir for herpes virus infections, albendazole for parasitic infections, sumatriptan for migraine , lamotrigine for epilepsy, bupropion and paroxetine for major depressive disorder , cimetidine and ranitidine for gastroesophageal reflux disorder , mercaptopurine and thioguanine for

5208-454: The company divested its portfolio of gene therapy drugs to Orchard Therapeutics in April 2018. In November 2018, Reuters reported that Unilever was in prime position to acquire GSK's interest in its Indian unit, GlaxoSmithKline Consumer Healthcare Ltd, in a sale that could generate around US$ 4   billion for the company. Nestlé and Coca-Cola have also been reported to be interested in

5301-516: The company selected Paul Rudolph to design its new building. The Elion-Hitchings Building "was celebrated worldwide when it was built," according to Paul Rudolph Heritage Foundation president Kelvin Dickinson. Alex Sayf Cummings of Georgia State University wrote in 2016, that the "iconic building helped define the image of RTP," saying, "Love it or hate it, Rudolph's design remains an impressively audacious creative gesture and an important part of

5394-510: 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

5487-643: 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

5580-590: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Silas Mainville Burroughs (pharmacist) Silas Mainville Burroughs (December 24, 1846 – February 6, 1895) was an American pharmaceutical entrepreneur who founded Burroughs Wellcome & Co. Born in Medina, New York , United States, he was the son of Congressman Silas M. Burroughs (1810–1860). His mother died when he

5673-481: 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

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5766-454: The firm, helping him financially to become junior partner in the renamed Burroughs Wellcome & Company . In order to expand the firm Burroughs undertook a promotional world tour from 1881 to 1884. He travelled on the S.S. Ceylon on the first commercial round-the-world cruise, from Southampton leaving the Ceylon at Bombay. In India, Australia and New Zealand he made important contacts and laid

5859-547: The first malaria vaccine . Malaria is responsible for over 650,000 deaths annually, mainly in Africa. Known as RTS,S , the vaccine was developed as a joint project with the PATH vaccines initiative and the Bill and Melinda Gates Foundation . The company has committed to making the vaccine available in developing countries for five per cent above the cost of production. As of 2013, RTS,S, which uses GSK's proprietary AS01 adjuvant,

5952-492: The first half of 2021. The company also agreed to a $ 2.1 billion deal with the United States to produce 100 million doses of the vaccine. SR One was established in 1985, by SmithKline Beecham to invest in new biotechnology companies and continued operating after GSK was formed; by 2003, GSK had formed another subsidiary, GSK Ventures, to out-license or start new companies around drug candidates that it did not intend to develop further. As of 2003, SR One tended to invest only if

6045-433: The foundation of the Livingstone Hospital at Dartford . Burroughs was known for pushing himself to the limit. When recovering from flu on a cycling trip on the French Riviera he exhausted himself and developed pneumonia. He died in Monte Carlo , aged 49 leaving his wife, Olive, and three children, Anna, Frances and Stanley. Olive died in 1905 and was buried there with him. Under the terms of his will each employee received

6138-412: The foundations for future trade in those countries. On his return the firm's headquarters had moved to Snow Hill, London and manufacturing subsequently moved to Dartford, Kent. The purchase of the Dartford building was one of a number of issues that caused friction between the partners, their close friendship deteriorated and in 1889 Burroughs unsuccessfully tried to dissolve the partnership. They were in

6231-416: 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

6324-453: The history of both architecture and Research Triangle Park ." United Therapeutics , which bought the building in 2012, announced plans in 2020, to tear it down. Glaxo and Wellcome merged in 1995, to form Glaxo Wellcome plc. The merger was then considered the biggest in the UK corporate history. Glaxo Wellcome restructured its R&D operation that year, cutting 10,000 jobs worldwide, closing its R&D facility in Beckenham, Kent, and opening

6417-415: 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

6510-460: 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)

6603-474: 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 ,

6696-434: 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

6789-480: 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

6882-409: The parent and obtained a listing on the London Stock Exchange . Glaxo acquired Allen & Hanburys in 1958. The Scottish pharmacologist David Jack was hired as a researcher for Allen & Hanburys a few years after Glaxo took it over; he went on to lead the company's research and development (R&D) until 1987. After Glaxo bought Meyer Laboratories in 1978, it began to play an important role in

6975-560: 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

7068-549: The process of discussing the dissolution again in 1894 when Burroughs died suddenly the following January. Burroughs, Wellcome & Company's successfully introduced new ideas for marketing and advertising (including the patenting of the word 'tabloid'); an increasing range of products and success at major international exhibitions. Burroughs was a visionary employer, supporting the eight-hour working day , profit-sharing, and numerous social and radical political movements including free travel, Irish Home Rule and world peace . He

7161-611: 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

7254-462: 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 the international oil market. Iran was unable to sell any of its oil. In August 1953,

7347-405: The slogan "Glaxo builds bonnie babies." The Glaxo Laboratories sign is still visible on what is now a car repair shop on the main street of Bunnythorpe. The company's first pharmaceutical product, released in 1924, was vitamin D. Glaxo Laboratories was incorporated as a distinct subsidiary company in London in 1935. Joseph Nathan's shareholders reorganised the group's structure in 1947, making Glaxo

7440-459: 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 the strong influence of

7533-417: The treatment of leukemia, allopurinol for gout , pyrimethamine for malaria , and the antibacterial trimethoprim . Among these, albendazole, amoxicillin, amoxicillin-clavulanate, allopurinol, mercaptopurine, mupirocin, pyrimethamine, ranitidine, thioguanine, trimethoprim, and zidovudine are on the World Health Organization's List of Essential Medicines . In 2014, GSK applied for regulatory approval for

7626-454: The treatment of migraine), salbutamol (Ventolin) (for the treatment of asthma), Zovirax (for the treatment of coldsores), and Retrovir and Epivir (for the treatment of AIDS). In 1999, the company was the world's largest manufacturer of drugs for the treatment of asthma and HIV/AIDS. It employed 59,000 people, including 13,400 in the UK, had 76 operating companies and 50 manufacturing facilities worldwide, and seven of its products were among

7719-573: 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

7812-578: The world's top 50 best-selling pharmaceuticals. The company had R&D facilities in Hertfordshire, Kent , London and Verona (Italy), and manufacturing plants in Scotland and the north of England. It had R&D centres in the US and Japan, and production facilities in the US, Europe and the Far East. In 1848, Thomas Beecham launched his Beecham's Pills laxative in England, giving birth to

7905-503: 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

7998-635: Was a good friend and passionate supporter of Henry George and the Single Tax Movement promoting it at every opportunity. He became increasingly active in the Liberal Party , was president of the Bexleyheath Liberal and Radical Club and it was suggested that he enter parliament. He became a British subject in 1890. Attracted to Christian socialism , he was a staunch Presbyterian : His philanthropism culminated in

8091-573: Was appointed chairman of the board in 2005. GSK opened its first R&D centre in China in 2007, in Shanghai, initially focused on neurodegenerative diseases. Andrew Witty became the chief executive officer in 2008. Witty joined Glaxo in 1985, and had been president of GSK's Pharmaceuticals Europe since 2003. In 2009, GSK acquired Stiefel Laboratories , then the world's largest independent dermatology drug company, for US$ 3.6 billion . In November 2009,

8184-753: Was being examined in a Phase 3 trial in eight African countries. PATH reported that "[i]n the 12-month period following vaccination, RTS,S conferred approximately 50% protection from clinical Plasmodium falciparum disease in children aged 5-17 months, and approximately 30% protection in children aged 6-12 weeks when administered in conjunction with Expanded Program for Immunization (EPI) vaccines." In 2014, Glaxo said it had spent more than US$ 350   million and expected to spend an additional US$ 260   million before seeking regulatory approval. GSK's consumer healthcare division, which earned £5.2   billion in 2013, sells oral healthcare, including Aquafresh , Macleans and Sensodyne toothpastes. GSK also previously owned

8277-494: Was erected at a cost of £300   million and as of 2002 was home to 3,000 administrative staff. GSK completed the acquisition of New Jersey–based Block Drug in 2001, for US$ 1.24 billion . In 2006, GSK acquired the US-based consumer healthcare company CNS Inc., whose products included Breathe Right nasal strips and FiberChoice dietary supplements, for US$ 566   million in cash. Chris Gent , previously CEO of Vodafone ,

8370-692: Was five and his father when he was 13. He grew up with his aunt and uncle, and started his professional career by working in drugstores, then as a travelling pharmaceutical salesman. In 1869 he joined the Philadelphia firm John Wyeth & Bro (now Wyeth Pharmaceuticals ). He graduated from the Philadelphia College of Pharmacy in 1877. In 1878, he travelled to London, England, as an agent for Wyeth, and founded Burroughs & Co. , which imported their goods as well as acquiring other agencies' products and marketing his own goods. In 1880 he convinced his American-born friend Henry Wellcome to join

8463-448: 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

8556-546: 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

8649-501: 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 was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore,

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