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114-965: LATAM Airlines Chile , formerly known as LAN Chile and LAN Airlines , is a Chilean multinational airline based in Santiago and one of the founding companies of the LATAM Airlines Group , the largest airline holding company in Latin America . Its main hubs are in the Arturo Merino Benítez International Airport in Santiago , Guarulhos International Airport in São Paulo and Jorge Chávez International Airport in Lima , with secondary hubs in Bogotá , Quito , Guayaquil and Asunción . LAN

228-574: A subpolar oceanic climate ( Köppen climate classification Cfc , Trewartha climate classification Eolk ). The seasonal temperature in Punta Arenas is greatly moderated by its proximity to the ocean, with average lows in July near −1 °C (30 °F) and highs in January of 14 °C (57 °F). It is known for stable constant temperatures, which vary only slightly with the seasons. Rainfall

342-555: A Boeing 707 named Three Oceans because it crossed the Atlantic, Indian and South Pacific oceans, visiting 18 different places. The aircraft was specially prepared for these flights. It had 80 seats in first class, thus providing passengers with ample room for their comfort. Eighty tourists were selected for a 31-day tour that included visits to the main cities of Africa, Asia and Oceania. Such flights were made until 1989, marketed according to their route under various names such as "Around

456-700: A LAN Chile Douglas DC-6B made the world's first commercial flight over Antarctica . Since then, all of LAN's DC-6 fleet had painted on their fuselage Primeros sobre la Antártica ("The first over Antarctica"), using this same aircraft type for its first commercial service to Miami International Airport in 1958. LAN Chile entered the jet era in 1963, purchasing three French Sud Aviation Caravelle VI-R , which initially flew to Miami , Guayaquil, Lima, Panama City and within Chile to Punta Arenas, Puerto Montt and Antofagasta. In 1966, LAN Chile purchased its first Boeing 707 from Lufthansa , in exchange for flying rights in

570-766: 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

684-424: A company possessing 3 million hectares in southern Chile and Argentina, with over 2 million head of sheep. The headquarters of this company and the residences of the owners were in Punta Arenas. The Sarah Braun Museum is now established at the former Braun-Menéndez mansion, in the centre of Punta Arenas. The Punta Arenas harbour, although exposed to storms, was considered one of the most important in Chile before

798-508: 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

912-504: A crew of 21 people ( captain , eighteen crew, and two women), plus cargo, to accomplish the mandate. The founding act of the settlement took place on 21 September 1843. The fort was well-positioned on a small rocky peninsula , but the location could not support a proper civilian settlement. With this in mind the Military Governor, José de los Santos Mardones, decided in 1848 to move the settlement to its current location, along

1026-429: 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

1140-706: A full-size replica of the first ship ever to circumnavigate the world: Ferdinand Magellan's Nao Victoria . Since October 2011, the museum has displayed a full-size replica of the James Caird , used by Ernest Shackleton during his Imperial Trans-Antarctic Expedition with the Endurance . The Museum of Remembrance of the University of Magallanes Instituto de la Patagonia displays examples of heritage buildings, old machinery and tools. They are part of an Open Museum, with high attendance and regional identity and

1254-506: A literal translation of the English name "Sandy Point". The name Sandy Point derives from the voyage of John Narborough in 1669-1671. He wrote in his account: Sand-Point [sic] is a mean low Point, lies out more than the other Points of the shore, and a few trees grow on it. The English 18th-century explorer John Byron is sometimes erroneously credited with naming this area. The city has also been known as Magallanes . Today that term

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1368-735: A major workers' strike. This caused several economic losses for the airline. Later that year they began to recover from this and were expected to resume 787 deliveries for 2019, which resumed with CC-BGO in November of that year. The airline has its headquarters on the 20th floor of the 5711 Avenida Presidente Riesco Building in Las Condes , Santiago Province . Previously its headquarters were in Estado 10 in downtown Santiago de Chile . LATAM flies to 30 international destinations in 16 countries along with 17 domestic destinations in Chile. LATAM Chile

1482-490: 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

1596-438: A significant number of foreign visitors, especially during the spring, summer and autumn seasons. It has 8 heritage wooden buildings; 40 antique vehicles and transport of great historical value; machines; and innumerable tools, mainly associated with livestock and oil production. As a "comuna" (commune) Punta Arenas is a third-level administrative division of Chile administered by a municipal council , headed by an alcalde who

1710-488: A significant role. Tourism has contributed to the city's economy and steady growth. Tourist destinations include the Cathedral and other notable churches, the city cemetery, and the statue of Magellan. Some cruise ships to Antarctica depart from Punta Arenas's port, which also serves as a hub for many cruise lines that travel along the channels and fjords of the region. A scheduled ferry service connects Punta Arenas with

1824-546: A week starting from December 2018 until 2020, using the company's Boeing 787 . This was the second air route operated by a South American company from South America to Asia. LATAM codeshares with the following airlines: As of August 2024, LATAM operates the following aircraft: LAN was the launch customer for the Pratt & Whitney PW6000 engine on the Airbus A318 . Its Airbus A319s and Airbus A320s are equipped with

1938-521: Is among the largest cities in Patagonia . In 2012, it had a population of 127,454. It is roughly 1,419 km (882 mi) from the coast of Antarctica and 635 km (395 mi) from Ushuaia , the capital of the Argentine province of Tierra Del Fuego . The Magallanes region is considered part of Chilean Patagonia . Magallanes is Spanish for Magellan , and was named after Ferdinand Magellan,

2052-555: Is currently the largest airline corporation in Latin America. The airline was founded by Chilean Air Force Commodore Arturo Merino Benítez (after whom Santiago International Airport is named), and began operations on March 5, 1929, as Línea Aeropostal Santiago-Arica (English: Postal Air Line Santiago-Arica ), under the government of President Carlos Ibáñez del Campo . In 1932 It was rebranded as Línea Aérea Nacional de Chile (English: National Air Line of Chile ), using

2166-610: Is currently the southernmost commercial point-to-point flight . The flight's great circle passes south of the Antarctic Circle , at a distance of about 800 km from the Antarctic mainland . In November 2017, the company announced the opening of a direct air route to Asia. The route operated with a flight departing from Santiago , Chile with a stop in São Paulo , Brazil , and from there it proceeded directly to Tel Aviv , Israel. The flights were operated three times

2280-456: Is directly elected every four years. The 2016–2020 alcalde is Claudio Radonich ( National Renewal ). Within the electoral divisions of Chile , Punta Arenas is represented in the Chamber of Deputies by Sandra Amar ( UDI ), Karim Bianchi (IND- PRSD ) and Gabriel Boric ( CS ) as part of the 60th electoral district, which includes the entire Magallanes and Antartica Chilena Region . The commune

2394-597: Is highest in April and May, and the snowy season runs all through the Chilean winter (June until September). As in most of Patagonia , average annual precipitation is quite low, only 380 mm (15 in) because of a rain shadow created by the Andes. The average temperature does not go below 1 °C (34 °F). The city is also known for its strong winds (up to 130 km/h [81 mph]), which are strongest during

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2508-515: Is home to the southernmost Hindu temple in the world, which is used by the relatively small, but significant, Sindhi community in Punta Arenas. Sindhi merchants began arriving in the area during the early 1900s, and today constitute one of the largest communities of Indians in Chile . By 2006 the economy of Punta Arenas and the region had diversified. Chile's principal oil reserves are close by, along with some low-grade coal . Agricultural production, including sheep and cattle, continues to play

2622-482: Is normally used to describe the administrative region which includes the city. Punta Arenas has been nicknamed "the city of the red roofs" for the red-painted metal roofs that characterized the city for many years. Since about 1970, the availability of other colours in protective finishes has resulted in greater variety in the characteristic metal roofs. Located on the Brunswick Peninsula , Punta Arenas

2736-410: 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

2850-501: Is represented in the Senate by Carlos Bianchi Chelech (Ind.) and Carolina Goic B. ( DC ) as part of the 19th senatorial constituency (Magallanes Region). Carlos Ibáñez del Campo airport is located 20 kilometers from the city centre. Rental car services, duty-free shops and custom office services are available in the building (there is no duty-free shop in the terminal, despite the representations of tourist literature). Airlines serving

2964-478: Is the largest south of the 46th parallel south and the most populous southernmost city in Chile and the Americas . Due to its location, it is also the coldest coastal city with more than 100,000 inhabitants in Latin America . Punta Arenas is one of the world's most southerly ports and serves as an Antarctic gateway city . Punta Arenas is the world's southernmost city with more than 100,000 inhabitants and claims

3078-528: Is the third-largest local operator behind Aerolíneas Argentinas and Austral. This subsidiary is also under the LAN brand. As of August 1, 2006, LAN merged first and business classes of service into a single class, named Premium Business . On October 28, 2010, LAN acquired 98% of the shares of AIRES , the second-largest air carrier in Colombia. On December 3, 2011, AIRES started operating as LAN Colombia under

3192-865: 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

3306-608: The Chilean Magallanes . The greatest immigration continued to be by the British until 1906, when Croatians surpassed them in numbers. An 1877 mutiny, known as El motín de los artilleros (Mutiny of the Artillerymen), led to the destruction of a large part of the town and the murder of many civilians not directly associated with the prison. In time the city was restored. The growth of the sheep farming industry and

3420-769: The IAE V2500s or CFM56s engines. LATAM overhauled its Boeing 767s, adding amenities like flatbed seats in Premium Business class, which offers 180 degrees of recline, and new touchscreen personal TVs with on-demand content. In May 2008, LAN Chile retired its last 737 from service and was replaced by the Airbus A320s. In addition to its A320 family aircraft and Boeing 767, LATAM purchased the Boeing 787 for its long-haul routes to Auckland, Sydney, and selected European routes, replacing its Airbus A340-300s that left

3534-460: The Las Minas river, and renamed it Punta Arenas. In the mid-19th century, Chile used Punta Arenas as a penal colony and a disciplinary posting for military personnel with "problematic" behaviour. It also settled immigrants there. In December 1851, a prisoners' mutiny led by Lieutenant Cambiaso , resulted in the murder of Governor Muñoz Gamero and the priest, and the destruction of the church and

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3648-611: The Salesians religious congregation, and is maintained by voluntary contributions made by the community. The museum is located at Pedro Montt No. 981, next to the Military Museum. It holds a historical collection of the Chilean Armed Forces during the colonization of the territory of Magallanes and Chilean Antarctica . The museum is located 7.5 km north on Route Y-565 to Rio Seco. This museum exhibits

3762-644: 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 ,

3876-492: The discovery of gold , as well as increasing trade via sailing ships, attracted many new settlers, and the town began to prosper. Between about 1890 and 1940, the Magallanes region became an important sheep-raising region, with one company ( Sociedad Explotadora de Tierra del Fuego ) controlling over 11,000 square kilometres (4,200 sq mi). In 1910, Sociedad Explotadora merged with Sociedad Ganadera, resulting in

3990-781: 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

4104-540: The "Magallanes Regional Museum" has been operating here, which has material from the contemporary history of the region. The museum is located at Avenida Bulnes no. 374, next to the Santuario María Auxiliadora. It is the most important in the area, and has a complete collection of species from the region and the Selk'nam culture. Samples from Antarctica are also on display. It was created in 1893 by

4218-546: The (2012 Census) by the National Statistics Institute . The population grew by 5.1% (5,830 persons) between the 1992 and 2002 censuses and further rose to 127,454 at the 2012 Census. The city was populated by many colonists from Spain and Croatia in the mid-nineteenth century, and many of their descendants remain. Other national ethnic groups represented are German , English , Italian , Swiss and Irish . Croatian immigration to Punta Arenas

4332-621: The 1880s and early 1900s. The largest sheep company, which controlled 10,000 square kilometres in Chile and Argentina, was based in Punta Arenas, and its owners lived there. Since its founding, Chile has used Punta Arenas as a base to defend its sovereignty claims in the southernmost part of South America. This led to the Strait of Magellan being recognized as Chilean territory in the Boundary Treaty of 1881 between Chile and Argentina . Punta Arenas' geopolitical importance has remained high in

4446-604: The 20th and 21st centuries due to its logistic significance in accessing the Antarctic Peninsula . Since 2017, the city and its region have been on their own time zone , using summer time throughout the year (UTC−3). The city is supplied with water from the San Juan River . The name Punta Arenas whose literal translation would be "Point Sands", is actually derived from the Spanish term Punta Arenosa ,

4560-543: The Americas of the Boeing 787 Dreamliner . On November 23, 2014, the airline received their first Airbus A321. This has been the domestic flagship of the airline ever since. On April 17, 2015, the airline officially retired the Airbus A340-300 from their fleet, the last one being CC-CQA. In December 2017 the airline received their first Airbus A320neo . However, months later these were grounded due to an issue with

4674-528: The Chilean Anti-Trust Authority resulted in the acquisition of the country's second-largest airline Ladeco on August 11, 1995. In October 1998, LAN-Chile merged its cargo subsidiary Fast Air Carrier with Ladeco, forming LAN Express . In 1998, LAN established a joint venture with Lufthansa called LLTT ( Lufthansa-LAN Technical Training S.A. ) with the aim of satisfying the needs for aircraft maintenance training in Latin America. LLTT

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4788-434: The Chilean government in 1848 as a small penal colony to assert sovereignty over the Strait. During the remainder of the 1800s, Punta Arenas grew in size and importance due to the increasing maritime traffic and trade travelling to the west coasts of South and North America. This city's growth was also due to waves of European immigrants, mainly from Croatia and Russia , attracted by a gold rush and sheep farming boom in

4902-529: The Chilean government privatized the carrier, selling a majority stake in the company to Icarosan and Scandinavian Airlines (49%), which subsequently sold its stake a few years later to local investors. Since 1994, major shareholders have been the Cueto Family and businessman Sebastián Piñera (until 2010), who sold his shares when taking office as President of the Republic of Chile. The approval from

5016-496: 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

5130-663: 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

5244-575: 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

5358-787: The LATAM Airlines Group. The purchase was completed on June 22, 2012. The Brazilian Administrative Council for Economic Defense ("CADE") and the Court for the Defense of Free Competition ("TDLC") approved the purchase subject to mitigation measures. The airlines have to relinquish four daily slot pairs from São Paulo-Guarulhos International Airport to other airlines willing to fly the Santiago-São Paulo route, waive membership in Star Alliance (of which TAM Linhas Aéreas

5472-602: The Lima-Santiago route. With this aircraft model, the company developed new long-haul routes to the US, Oceania, and Europe. LAN-Chile started on April 15, 1967, the route Santiago- John F. Kennedy International Airport and Santiago- Easter Island on April 8. In October 1967 a LAN Chile Sud Aviation Caravelle made the first ILS landing in South America at Lima's Jorge Chávez International Airport . On January 16, 1968,

5586-574: 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

5700-558: 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,

5814-519: The Portuguese explorer sailing for Spain . While circumnavigating the Earth for Spain, he passed close to the present site of Punta Arenas in 1520. Early English navigational documents referred to this site as "Sandy Point." The city proper is located on the northeastern shore of Brunswick Peninsula. Except for the eastern shore, containing the settlements of Guairabo, Rio Amarillo and Punta San Juan,

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5928-506: The Pratt & Whitney PW1000G engines. LATAM faced many problems caused by both groundings of the A320neo and Boeing 787 aircraft in 2018. Later that year, they started recovering from that. In 2021, LATAM acquired four Boeing 787-9 aircraft that used to fly for Norwegian Air Shuttle , which entered service in late 2022. LATAM has formerly operated the following aircraft; LATAM Pass is

6042-575: The Punta Arenas section in 1961. The University of Magallanes has campuses in Punta Arenas and Puerto Natales as well as a university centre in Puerto Williams . University of Magallanes publishes the humanities and social sciences journal Magallania twice a year. There is a German school, Deutsche Schule Punta Arenas. The museum is located in the Braun Menéndez Palace, which is a National Monument. Since February 1983,

6156-794: The Santiago-Easter Island flight was extended to Papeete-Faa'a International Airport , in Tahiti , French Polynesia using a Douglas DC-6B . The airline then introduced Boeing 707 jet service on the Santiago – Easter Island –Papeete, Tahiti route in April 1970. On September 4, 1974, this route was extended to Fiji. In 1969, LAN Chile expanded its destinations to Rio de Janeiro , Asunción and Cali with new Boeing 727s . In 1970, with Boeing 707s, LAN Chile opened its first transatlantic routes to Madrid–Barajas Airport , Frankfurt Airport and Paris-Orly. Since its inception and until 1970,

6270-531: 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)

6384-559: The Straits of Magellan). The first was founded in 1584 and was called Nombre de Jesús. It failed due to the harsh weather and difficulty in the settlers' obtaining food and water, and the enormous distances from other Spanish ports. A second colony, Ciudad del Rey don Felipe , was attempted about 80 kilometres south of Punta Arenas. This became known later as Puerto del Hambre , which translates to Port Famine . Spain had established these settlements in an attempt to protect its shipping and prevent piracy by English pirates , by controlling

6498-447: The Straits of Magellan. An English privateer , Thomas Cavendish , during his circumnavigation , rescued the last surviving member of Puerto del Hambre in 1587. In 1843 the Chilean government sent an expedition to build a fort and establish a permanent settlement on the shores of the Strait of Magellan. It built and commissioned a schooner called Goleta Ancud. Under the command of John Williams Wilson , Chilean Navy, it transported

6612-404: 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

6726-636: 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

6840-450: 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

6954-506: 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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7068-558: 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

7182-461: 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

7296-418: 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

7410-410: 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

7524-407: 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

7638-401: 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

7752-434: The World", "Three Oceans", "Three Continents", "Mediterranean","East-West China", etc. In June 1986, Boeing 767-200ERs replaced the DC-10 fleet, with a new route to Montréal–Mirabel International Airport . In 1988, LAN Chile started construction of its maintenance center at Santiago Airport and added a Boeing 747-100 on lease from Aer Lingus to its fleet during the summer season for its US flights. In September 1989,

7866-509: The acronym LAN Chile as its commercial name. LAN Chile's first fleet consisted of de Havilland Moth planes. Merino Benitez was a strong defender of Chilean carriers' exclusivity on domestic routes, differing from most Latin American countries which easily granted authorization on domestic flights to US-based Panagra , influenced by the propaganda made by Charles Lindbergh 's Atlantic crossing. Also because of this reason, US-built airplanes became more difficult to incorporate to LAN's fleet until

7980-402: The airline had its headquarters, main hub, and maintenance center at Los Cerrillos Airport , in southwest Santiago. The restrictions imposed by the growing metropolitan area of Santiago and the need for modern, jet-era airport facilities that could safely accommodate both domestic and intercontinental flights, drove the need to relocate the Chilean capital's principal airport from Los Cerrillos to

8094-473: The airline's frequent flyer program to reward customer loyalty. There are currently over four million members. Members earn miles every time they fly with LATAM Chile, an affiliated airline, or by using the services of any LATAM Pass-associated business around the world. The LATAM Pass program has five membership categories: On May 5, 2016, LANPass was rebranded as LATAM Pass, once LAN Chile fully transitioned into LATAM Chile. LATAM Airlines operates lounges at

8208-444: The airport include LATAM Chile and Sky Airline , as well as charter flights. The civilian airport and the military airport make up the larger complex. The city has sea, land, and air connections. By road, a connection to other regions of Chile requires passing through Argentine territory. By sea, several cruises and ferries can take visitors to the city, although the costs are higher because they include stops at tourist sites along

8322-461: The beginning of WWII. In 1936, 2 French Potez 560 airplanes were purchased while in 1938, 4 German Junkers Ju 86 Bs were incorporated into the fleet. During that same year, a cooperation agreement was established with Lloyd Aéreo Boliviano and the Peruvian carrier Faucett . Another agreement with Lufthansa was signed for flights to and from Europe and America's Atlantic coast. In 1940, given

8436-469: 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 ,

8550-742: 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

8664-654: 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

8778-568: The company replaced its Boeing 727s with the Boeing 737-200 on its domestic routes. Also, McDonnell Douglas DC-10-30s , LAN Chile's first wide-body jets, were added for use on routes to Los Angeles, Miami, and New York. That same year, the maintenance facilities were relocated from Los Cerrillos to Arturo Merino Benítez Airport. In 1985, LAN-Chile implemented a program of flights around the world called Cruceros del Aire ("Air Cruises"), pioneers and unique in Latin America. The initial version included two flights per year (April 26 and September 26) on

8892-510: 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

9006-498: The construction of the Panama Canal . It was used as a coaling station by the steamships transiting between the Atlantic and Pacific oceans. Today it is mostly used by tourism cruises and scientific expeditions. The city is often a base for Antarctic expeditions; Ushuaia (Argentina) and Christchurch (New Zealand) are also common starting points. In 2012 Punta Arenas recorded a population of over 127,000 inhabitants for

9120-643: 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

9234-615: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Punta Arenas Punta Arenas ( Spanish pronunciation: [ˈpunta aˈɾenas] , historically known as Sandy Point in English) is the capital city of Chile 's southernmost region , Magallanes and Antarctica Chilena . Although officially renamed as Magallanes in 1927, the name was changed back to Punta Arenas in 1938. The city

9348-622: The denser southwest metropolitan region of Santiago to the more rural northwest metropolitan area. For this reason, Santiago International Airport in Pudahuel was built between 1961 and 1967, fully moving LAN Chile's flights to this new airport in 1970. On February 10, 1974, a LAN-Chile Boeing 707 flown by captain Jorge Jarpa Reyes made the world's first transpolar non-stop flight between South America ( Punta Arenas Airport ) and Australia ( Sydney Kingsford-Smith Airport ). In 1980,

9462-481: 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

9576-565: The fleet in April 2015. In 2011, LAN Chile ordered 10 A318s but sold them to Avianca Brasil, in order to purchase another 128 jets from the A320 family and one more A340-300. That year the airline placed orders for more Airbus A320 and brand new Airbus A321 aircraft. LATAM Chile is the American launch customer for the Sharklets for its A320 fleet. In 2012, LAN Chile became the launch customer in

9690-634: The following airports: These lounges are accessible for passengers traveling in Premium Business, Business, and Premium Economy, as well as selected members of the LATAM Pass program who are Black or Platinum members. The newly renovated LATAM lounges were designed by Chilean architects Mathias Klotz and Olivia Putman . 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

9804-416: 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

9918-404: The hospital. The mutiny was put down by Commander Stewart of HMS  Virago assisted by two Chilean ships: Indefatigable and Meteoro . In 1867, President José Joaquín Pérez issued a decree offering land grants in an effort to get Chileans or foreigners to settle around Punta Arenas. The first British immigrants arrived in 1867, and their number increased as sheep farming grew in

10032-415: 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

10146-460: 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)

10260-474: 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 ,

10374-578: The main island of Tierra del Fuego , and a less frequent ferry runs to the Chilean town of Puerto Williams . University of Magallanes (UMAG) is in the southern Chilean city of Punta Arenas. It is part of the Chilean Traditional Universities . The University of Magallanes was established in 1981 during the neoliberal reforms of Chile's military regime as the successor of Universidad Técnica del Estado 's Punta Arenas section. Universidad Técnica del Estado had established

10488-494: 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

10602-480: 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

10716-519: The peninsula is largely uninhabited. The municipality of Punta Arenas includes all of Brunswick Peninsula, as well as all islands west of the Isla Grande de Tierra del Fuego and north of Cockburn and Magdalena channels. The largest of those are: Except Dawson Island , which had a population of about 301 in 2002, the islands are largely uninhabited. Clarence Island had a population of five. Due to its far southern latitude, Punta Arenas has

10830-560: 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

10944-611: 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

11058-628: The restrictions imposed during WWII on access to spare parts for the Junker's BMW engines, LAN Chile had to replace them with Lockheed Model 10A Electras , adding in 1941 further Lockheed Lodestar C-60 and Douglas DC-3 in 1945. On August 23, 1945, LAN Chile became a member of the newly formed IATA . In October 1946, it started international service to Buenos Aires at Morón Airport and in 1947 to Punta Arenas , Chile's most distant continental destination. In December 1954, LAN Chile made its first commercial flight to Lima, Perú. On December 22, 1956,

11172-462: 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,

11286-461: The summer. City officials have put up ropes between buildings in the downtown area to assist pedestrians with managing the strong downdrafts. Since 1986, Punta Arenas has been the first significantly populated city in the world to be affected directly by the thinning ozone layer . Its residents are considered to be exposed to potentially damaging levels of ultraviolet radiation . Two early Spanish settlements were attempted along this coast (on

11400-459: 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

11514-530: The title of southernmost city in the world, although this title is also claimed by Ushuaia in Argentina, which lies farther south but is slightly smaller than Punta Arenas. Since 1977, Punta Arenas has been one of only two free ports in Chile, the other being Iquique in the country's far north. Located on the Brunswick Peninsula north of the Strait of Magellan , Punta Arenas was originally established by

11628-421: The unified LAN livery. Since May 5, 2016, LAN has been operating as LATAM Airlines. The airline opened many routes during 2017, one of them being the longest flight in their history: Santiago to Melbourne, which started operating October 5 of that year. On August 13, 2010, LAN Airlines signed a non-binding agreement with Brazilian Airline TAM Linhas Aéreas for the purchase of LAN from TAM Linhas Aéreas to form

11742-579: The unique LAN brand and livery, eliminating each airline country name on the brands. On June 17, 2004, LAN-Chile changed its formal name to LAN Airlines (which was said to mean L atin A merican N etwork Airlines , even though the airline says LAN is no longer an acronym) as part of this re-branding and internationalization process; although, when founded in 1929, LAN originally meant "Línea Aérea Nacional" (National Airline). In March 2005, LAN opened its subsidiary LAN Argentina in Argentina and operates national and international flights from Buenos Aires , and

11856-573: 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

11970-503: 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

12084-420: Was a crucial development in the region of Magallanes and the city in particular. Currently, this influence is still reflected in the names of shops, streets and many buildings. Punta Arenas is said to have the largest percentage of Croatians in the world outside Croatia and the former Yugoslavia. Punta Arenas also has the largest percentage of residents of British descent in the whole of Chile. Punta Arenas

12198-572: Was a member) or Oneworld, and interline agreements with other airlines operating selected routes, among other provisions. It still continued to use its "LAN CHILE" call sign, as well as its post-merger IATA and ICAO identities for its LATAM-operated flights. During the first half of 2018, the airline experienced problems due to the Rolls-Royce engines on its Boeing 787 Dreamliner fleet, having grounded at least six of them since February 2018. In April 2018, its domestic subsidiary LATAM Express suffered

12312-425: Was a popular choice for surfers traveling to South America because of their policy of not charging extra baggage fees. However, starting on December 19, 2016, they changed their policy and now charge US$ 200 per way for a surfboard bag of up to three boards. On October 5, 2017, LATAM inaugurated their direct route between Santiago and Melbourne , a 15-hour (westbound) and 11,300 kilometres (6,100 nmi) flight. It

12426-617: Was based at LAN's hangars in Arturo Merino Benítez Airport. LLTT was the only A320 Maintenance Simulator (CMOS) training provider in Latin America. In 2000, LAN Cargo opened up a major operations base at Miami International Airport and currently operates one of its largest cargo facilities there. In 2002, LAN Chile started its internationalization process through LAN Perú and LAN Ecuador . In March 2004, LAN-Chile and its subsidiaries, LAN Perú, LAN Ecuador, LAN Dominicana and LAN Express , became unified under

12540-405: Was formed after the takeover by LAN of Brazilian airline TAM Linhas Aéreas , which was completed on June 22, 2012. In August 2015, it was announced that both airlines would rebrand as LATAM, with one livery to be applied on all aircraft by 2018. Currently, LATAM Chile and LATAM Brasil continue to work as separate companies, under LATAM Airlines Group acting as the parent company. LATAM Airlines Group

12654-448: 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

12768-546: 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

12882-501: 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,

12996-669: Was the flag carrier of Chile until its privatization in the 1990s; it is the predominant airline in Chile, Ecuador , and Peru , and the second-largest carrier in Colombia , through its local subsidiaries. LATAM is the largest airline in Latin America, serving Latin America, North America , the Caribbean , Oceania, Asia, and Europe. The carrier was a member of the Oneworld airline alliance from 2000 until 2020. LATAM Airlines Group

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