A multi-national corporation ( MNC ; also called a multi-national enterprise ( MNE ), trans-national enterprise ( TNE ), trans-national corporation ( TNC ), international corporation , or state less corporation , ) is a corporate organization that owns and controls the production of goods or services in at least one country other than its home country. Control is considered an important aspect of an MNC to distinguish it from international portfolio investment organizations , such as some international mutual funds that invest in corporations abroad solely to diversify financial risks. Black's Law Dictionary suggests that a company or group should be considered a multi-national corporation "if it derives 25% or more of its revenue from out-of-home-country operations".
95-834: LG Corporation (or LG Group ), formerly known as Lucky-Goldstar , is a South Korean multinational conglomerate founded by Koo In-hwoi and managed by successive generations of his family. It is the fourth-largest chaebol (family-run conglomerate) in South Korea. Its headquarters are in the LG Twin Towers building in Yeouido-dong , Yeongdeungpo District , Seoul . LG makes electronics , chemicals , household appliances , and telecommunications products and operates subsidiaries such as LG Electronics , Zenith , LG Display , LG Uplus , LG Innotek , LG Chem , and LG Energy Solution in over 80 countries. According to
190-766: 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
285-619: A company specializing in IT and infrastructure maintenance in the near future. In March 2011, Hitachi agreed to sell its hard disk drive subsidiary, HGST , to Western Digital for a combination of cash and shares worth US$ 4.3 billion. Due to concerns of a duopoly of WD and Seagate Technology by the EU Commission and the Federal Trade Commission , Hitachi's 3.5" HDD division was sold to Toshiba . The transaction
380-508: 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
475-429: 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
570-823: A joint venture known as LG Magna e-Powertrain. The new joint venture will manufacture components used in electric cars such as electric motors, inverters and onboard chargers. LG owns the South Korean professional baseball team LG Twins , and is the main sponsor of basketball team Changwon LG Sakers . LG is also a partner of the American professional baseball team Texas Rangers . LG also sponsored football clubs Girondins de Bordeaux from 1999 to 2000, Leicester City F.C. from 2001 to 2003, Olympique Lyonnais from 2004 to 2006, AEK Athens from 2006 to 2009, Fulham F.C. from 2007 to 2010 and Bayer 04 Leverkusen from 2013 to 2016. Multinational corporation Most of
665-490: 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
760-489: A pivotal moment following the 2008 global financial crisis . This crisis led to a record loss of 787.3 billion yen, prompting a strategic overhaul. The company concentrated its efforts on the 'Social Innovation Business', capitalising on its strengths in infrastructure and IT, and underwent major structural changes. These involved consolidating unprofitable operations and venturing into new fields such as digital systems and renewable energy, adapting to changing market dynamics. As
855-566: A private enterprise" to proceed. In October 2019, the talks between Honda and Hitachi to consolidate their four automotive parts businesses, Showa , Nissin and Keihin of the former and the latter's Hitachi Automotive Systems, have reportedly begun, resulting in the creation of a "mega supplier" named Hitachi Astemo incorporated in January 2021. In March 2020, an improved version of the L0 Series SCMaglev rolling stock for
950-423: A result of these strategic moves, Hitachi returned to profitability by March 2011. Today, Hitachi's corporate activities are organised into three large sections: Digital Systems and Services, Green Energy and Mobility, and Connective Industries. The Digital Systems and Services segment features Lumada. This segment focuses on business processes and operational efficiency. This segment accounted for 21.9 percent of
1045-410: 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
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#17327726676521140-438: Is recognised worldwide. As of September 2023 LG Corporation is a holding company that operates worldwide through more than 30 companies in the electronics, chemical, and telecom fields. Its electronics subsidiaries manufacture and sell products ranging from electronic and digital home appliances to televisions and mobile telephones, from thin-film-transistor liquid-crystal displays to security devices and semiconductors . In
1235-567: Is taking for 2016 an estimated ¥65 billion write-off in value of a SILEX technology laser uranium enrichment joint venture with General Electric . In February 2017, Hitachi and Honda announced a partnership to develop, produce and sell motors for electric vehicles. Also in 2017, private equity firm KKR bought Hitachi Kokusai's (itself a subsidiary of Hitachi) semiconductor equipment division, becoming Kokusai Electric . In 2019, Applied Materials announced that it would acquire Kokusai Electric from KKR for US$ 2.2 billion. The deal
1330-865: 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
1425-573: The Chuo Shinkansen was introduced, marking the first magnetically levitated train manufactured by Hitachi. In September 2020, Hitachi abandoned plans to create nuclear power plants in Gloucestershire and Wales due to issues with funding due to the impact of COVID-19 . In the same month, Hitachi Capital agreed to be bought by its second-largest shareholder, business partner, and former rival Mitsubishi UFJ Lease , which invested in
1520-626: The Coca-Cola Korea Bottling Company, manages real estate, offers management consulting , and operates professional sports clubs. LG and Hitachi created joint ventures named Hitachi-LG Data Storage in 2000 and LG Hitachi Water Solutions in 2011; among other partnerships it has had, LG has a long relationship with Hitachi dating back to the early years of Goldstar. Since then Hitachi has transferred technologies for LG's products such as radios, wires, TVs, home appliances, semiconductors, etc. The first joint venture between
1615-848: The Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include the Swedish Africa Company founded in 1649 and the Hudson's Bay Company founded in 1670. These early corporations engaged in international trade and exploration and set up trading posts. The Dutch government took over
1710-552: The purge of key pre-war Japanese figures ended. However, he died in October of the same year at age 77. Despite these challenges, Hitachi demonstrated strong resilience, quickly recovering its pre-war production and technology levels and expanding its business scope. In 1949, Hitachi built its first power shovel, marking the start of what is now Hitachi Construction Machinery . The company also innovated in electric generators during this period. Furthermore, in 1960, Hitachi developed
1805-670: The 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from the Spanish government. Rio Tinto, now based in London and Melbourne , Australia, has made many acquisitions and expanded globally to mine aluminum , iron ore , copper , uranium , and diamonds . European mines in South Africa began opening in the late 19th century, producing gold and other minerals for
1900-601: The Darlington site in Ontario, Canada. OPG and GE-Hitachi will be collaborating on the design, planning and preparation of license materials for the construction of Canada's first SMR which is planned to enter operation in 2028. Hitachi, with its focus on energy, information technology, and infrastructure, has seen a significant improvement in profitability since the record loss in 2009. Reflecting this, Hitachi’s market capitalisation has more than octupled since 2010, becoming
1995-551: 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
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#17327726676522090-552: The Hitachi HM6147 chip, developed by a Hitachi team led by Toshiaki Masuhara, was able to match the Intel's flagship 2147 HMOS's performance with 87 per cent less power. Until the early 1980s, American semiconductor producers were focusing on the development and production of NMOS transistors, with which they dominated the global market, while Hitachi invested heavily in developing efficient CMOS transistors. This success led to
2185-570: The Hitachi NAS Platform. Since September 19, 2017, Hitachi Data Systems (HDS) has become part of Hitachi Vantara, a new company that unifies the operations of Pentaho , Hitachi Data Systems and Hitachi Insight Group. The company name "Hitachi Data Systems" (HDS) and its logo is no longer used in the market. Hitachi Consulting , the group's international management and technology consulting subsidiary with headquarters in Dallas, Texas,
2280-546: The Hitachi subsidiary in 2016. In November 2020, it announced that Hitachi Metals and Hitachi Construction Machinery , both being some of the last remaining listed subsidiaries, will likely be detached from the group according to the restructuring plan. In December, Hitachi sold a 60% stake in its overseas home appliance business to Turkish Arcelik for US$ 300 million. In December 2021, it was announced by OPG that they had selected GE-Hitachi to construct two BWRX-300 reactors at
2375-575: 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
2470-574: 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
2565-558: 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,
2660-464: 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
2755-636: 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
2850-507: The UK, from E.ON and RWE for £700 million. In November 2012, Hitachi and Mitsubishi Heavy Industries agreed to merge their thermal power generation businesses into a joint venture to be owned 65% by Mitsubishi Heavy Industries and 35% by Hitachi. The joint venture named Mitsubishi Hitachi Power Systems (MHPS) began operations in February 2014. In 2020 Hitachi transferred its share of
2945-554: The United Kingdom, expanded in the 2010s, with Hitachi Newton Aycliffe starting operations in October 2015. Following the Fukushima Daiichi nuclear disaster in 2011 and the extended temporary closure of most Japanese nuclear plants, Hitachi's nuclear business became unprofitable and in 2016 Hitachi CEO Toshiaki Higashihara argued Japan should consider a merger of the various competing nuclear businesses. Hitachi
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3040-541: 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
3135-506: 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
3230-614: 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
3325-461: 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
3420-629: The United States, 115 in Western Europe, 70 in Japan, and 20 in the rest of the world. The multinationals in banking numbered 20 headquartered in the United States, 13 in Europe, nine in Japan and three in Canada. Today multinationals can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile ; The Economist suggests that
3515-766: The VOC in 1799, and during the 19th century, other governments increasingly took over private companies, most notably in British India. During the process of decolonization , the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company , dissolving in 1972. Mining of gold, silver, copper, and oil was a major activity early on and remains so today. International mining companies became prominent in Britain in
3610-507: The West to the post-colonial South and invest either in foreign expenditures or ostentatious economic development projects. After 1974, most of the money from OPEC members ceased as payments for goods and services or investments in Western industry. In February 1974, the first Washington Energy Conference was convened. The most significant contribution of this conference was the establishment of
3705-591: The automotive and electronics industries. Among the Hitachi Metals facilities is Hitachi Metal Yasugi Works or Tatara Works, one of the oldest furnaces in Japan, famously featured as a main backdrop in Princess Mononoke , a Japanese animation film set in the Muromachi period . As of September 2020, Hitachi Metals is set to be divested as part of the long-term restructuring plan being executed by
3800-469: 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 ,
3895-402: The brand name GoldStar, while some other household products (not available outside South Korea) were sold under the brand name of Lucky. The Lucky brand was famous for hygiene products such as soaps and HiTi laundry detergents, but the brand was mostly associated with its Lucky and Perioe toothpaste . LG continues to manufacture some of these products for the South Korean market. Koo In-hwoi led
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3990-409: The chemical industry, subsidiaries manufacture and sell products including cosmetics, industrial textiles, rechargeable batteries and toner products, polycarbonates , medicines, and surface decorative materials. Its telecom products include long-distance and international phone services, mobile and broadband telecommunications services, as well as consulting and telemarketing services. LG also operates
4085-742: 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
4180-654: 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
4275-515: The company started manufacturing elevators and electric refrigerators. World War II and its aftermath significantly impacted Hitachi, leading to the destruction of factories, post-war internal discord, and the removal of founder Namihei Odaira by the Allied occupational forces. Hitachi went public in 1949, listing on the Tokyo Exchange (TYO:6501). Odaira returned to the company in 1951 when
4370-544: The company, making it difficult to implement fundamental solutions. These delays in essential reforms proved detrimental when facing the 2007–2008 financial crisis and led to the record loss. This prompted Hitachi to restructure and sell a number of divisions and businesses under the leadership of Takashi Kawamura . From 2008 to 2018, Hitachi reduced the number of its listed group companies and consolidated subsidiaries in Japan from 22 to 4 and around 400 to 202, respectively, through restructuring and sell-offs. It plans to become
4465-489: The compatriot auto suppliers. The rest of the group companies include: Bought by Mitsubishi , it had been the group's financial business arm. Spin-off entities from Hitachi Works include Hitachi Cable (1956) and Hitachi Canadian Industries Limited (founded 1988 in Saskatoon and closed in 2016 as Mitsubishi-Hitachi Power Systems). As Hitachi pulled out of MHPS and handed over the control to MHI , Hitachi Works
4560-510: 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
4655-416: The corporation until his death in 1969, at which time, his son Koo Cha-kyung took over. He then passed the leadership to his son, Koo Bon-moo , in 1995. Koo Bon-moo renamed the company to LG in that year. The company then trademarked the letters LG with the company's tagline "Life's Good". Since 2009, LG has owned the domain name LG.com. Koo Bon-moo died of a brain tumor on 20 May 2018. In July 2018, it
4750-643: 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
4845-487: The current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were the British East India Company founded in 1600 and
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#17327726676524940-626: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Hitachi Hitachi, Ltd. ( Japanese pronunciation: [çi̥taꜜtɕi] ) is a Japanese multinational conglomerate founded in 1910 and headquartered in Chiyoda, Tokyo . The company is active in a range of industries, including digital systems, power and renewable energy , railway systems, healthcare products , and financial systems . The company
5035-481: 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
5130-463: The first consumer HDD with a storage of 1 TB, which was released in the same year. In FY2008, Hitachi lost US$ 7.8 billion, the largest corporate loss in Japanese history up to that point. Since its zenith in the 1980s and 1990s, a number of departments had suffered a decline in efficiency. However, being one of the largest conglomerates in the world at the time, conflicts of interest existed across
5225-410: The former's wholly owned Hitachi Automotive Systems, to be better equipped for the changing car market environment, frequently represented as CASE, for which they will integrate their assets to accelerate development of new technology and software. Hitachi Astemo is considered a "mega supplier", as annual sales of the four predecessors combined stood at $ 17 billion, placing it as the second largest among
5320-500: The fourth largest Japanese company by market value. In terms of global recognition, Hitachi was ranked 38th in the 2012 Fortune Global 500 and 129th in the 2012 Forbes Global 2000 . Hitachi is a highly globalised conglomerate. In the fiscal year 2023, it generated approximately 61% of its total revenue of 9.7 trillion yen from international markets. The major contributors to this global revenue were Asia , Europe , and North America , with each region accounting for 22%, 16%, and 16% of
5415-737: The fourth largest company in Japan by market capitalisation in June 2024. Hitachi Vantara is a wholly owned subsidiary of Hitachi which provides hardware, software and services to help companies manage their digital data. Its flagship products are the Virtual Storage Platform (for enterprise storage), Hitachi Unified Storage VM for large-sized companies, Hitachi Unified Storage for small and mid-sized companies, Hitachi Content Platform (archiving and cloud architecture), Hitachi Command Suite (for storage management), Hitachi TrueCopy and Hitachi Universal Replicator (for remote replication), and
5510-591: The group. Hitachi is a major rolling stock manufacturer. Hitachi acquired Italian rolling stock manufacturer AnsaldoBreda in 2015, renaming it Hitachi Rail Italy Hitachi Astemo, which stands for "Advanced Sustainable Technologies for Mobility", is a 67-33 joint venture between Hitachi and Honda , which merged their four auto parts affiliates and division, the latter's three keiretsu companies Showa Corporation , Keihin Corporation , and Nissin Kogyo , and
5605-416: 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
5700-521: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by
5795-415: 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
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#17327726676525890-509: The kanji for 'sun' (日, hi ) and 'rise' (立, tachi ), was coined by Odaira. While industrial machinery in Japan was usually powered by steam at the time, Odaira built water power stations in the mine and electrified almost all facilities in the factory. This led to the accumulation of expertise in electrical engineering, and helped the company develop various electrical equipment later in its history. In 1924, Hitachi completed Japan's first mainline electric locomotive ( JNR Class ED15 ). In 1932,
5985-460: 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)
6080-474: 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 ,
6175-494: 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
6270-543: The marketplace such as externalities). Moving to the left side of the line are nationalists, who prioritize national interests over corporate profits, then the "dependencia" school in Latin America that focuses on the evils of imperialism, and on the far left the Marxists. The range is so broad that scholarly consensus is hard to discern. Anti-corporate advocates criticize multinational corporations for being without
6365-560: 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
6460-571: The process. In October 2021, the enterprise was rebranded Hitachi Energy . In 2019, Hitachi sold its medical imaging business to Fujifilm for US$ 1.7 billion. Showa Denko bought Hitachi Chemical from Hitachi and other shareholders, at US$ 42.97 per share. Until then, Hitachi Chemical had been considered to be a core unit of the group. Hitachi also suspended the ABWR development by its British subsidiary Horizon Nuclear Power as it did not provide adequate "economic rationality as
6555-611: 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
6650-460: The server-side system. Other contactless fare card systems such as ICOCA and PASMO have been introduced throughout the country since, almost all of which are modelled after Suica and thus mutually compatible. It is now widely used as a contactless payment system in non-railway business as well, and Hitachi has been involved in the series of developments in this area. At the CES 2007 , Hitachi revealed
6745-501: The strong influence of the United States on the global oil market. In 1959, companies lowered the price of oil due to a surplus in the market. This reduction dealt a significant blow to the finances of producers. Saudi oil minister Abdullah Tariki and Venezuela’s Juan Perez Alfonso entered into a secret agreement (the Mahdi Pact), promising that if the price of oil was lowered a second time, they would take collective action against
6840-526: The total revenue in FY2022. Founded in 1910 in Ibaraki Prefecture by electrical engineer Namihei Odaira, Hitachi's first product was Japan's inaugural 4-kilowatt induction motor, designed for copper mining. Originally an in-house venture of Fusanosuke Kuhara's mining company, Hitachi became independent in 1911 and moved its headquarters to Tokyo in 1918. The company's name 'Hitachi', combining
6935-503: The total revenue in FY2022. In the Connective Industries segment, Hitachi offers building systems such as elevators and escalators, healthcare with a focus on less invasive cancer treatments and diverse medical equipment, and a variety of industrial equipment such as air compressors and transformers. Additionally, the segment provides sustainable water and wastewater management. This segment accounted for 27.3 per cent of
7030-579: The total revenue in FY2022. The Green Energy and Mobility segment focuses on developing and providing power systems. This includes power generation, transmission, and distribution systems. In the rail industry, the company is a provider of rolling stock and traction equipment to signaling, traffic management systems, and maintenance depots. A key component of this segment is the ZeroCarbon suite, designed to enable fleet operators to transition to electric vehicles. This segment accounted for 22.9 per cent of
7125-650: The total revenue, respectively. Hitachi's mission is to 'contribute to society through the development of superior, original technology and products'. This ethos is evident in its leadership, as all its 12 CEOs, including founder Odaira, have engineering backgrounds. Remarkably, 8 out of the 12 consecutive CEOs, including Odaira, are alumni of the University of Tokyo 's Faculty of Engineering. Historically recognised for its technology and industrial products, including electric generators , consumer electronics , trains , computers , and nuclear reactors , Hitachi faced
7220-430: The two is LG Hitachi, which has been around since 1980s when it was established to import computers to Korea. LG had two joint ventures with Royal Philips Electronics : LG Philips Display and LG Philips LCD , but Philips sold off its shares in late 2008. In 2005, LG entered into a joint venture with Nortel Networks , creating LG-Nortel Co. Ltd. In 2020, LG and Canadian auto supplier Magna International launched
7315-403: The venture to MHI. In October 2015, Hitachi completed a deal with Johnson Controls to form a joint venture that would take over Hitachi's HVAC business. Hitachi maintained a 40% stake in the resulting company, Johnson Controls-Hitachi Air Conditioning. In May 2016, Hitachi announced it was investing $ 2.8 billion into its IoT interests. Hitachi’s rail business in Europe , especially in
7410-496: The world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902) was one of the few businessmen in the era who became Prime Minister (of South Africa 1890–1896). His mining enterprises included the British South Africa Company and De Beers . The latter company practically controlled the global diamond market from its base in southern Africa. In 1945, the United States
7505-573: 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
7600-406: The world's first electric train seat reservation system, MARS-1 , for Japanese National Railways , allowing nationwide booking for express train seats. Around the same time, Hitachi began expanding its business overseas, with the establishment of Hitachi America, Ltd. 1959. In 1961, Hitachi began selling fully-automated washing machines and completed its first experimental nuclear reactor. In 1964,
7695-417: The world's first fully MOX -fuelled nuclear power station, Fugen . This was an innovative initiative, as MOX was seen as an efficient way of utilising plutonium from nuclear waste, which would otherwise have to be stored in security to ensure that it is not used to build nuclear weapons. In 1978, Hitachi's Twin-Well Hi- CMOS process ushered in a new era in the global semiconductor industry . For instance,
7790-669: The world's first high-speed railway line, the Shinkansen , opened. Hitachi not only built the innovative Series 0 rolling stock but also played a crucial part in developing the equally pioneering Automatic Train Control system (ATC) and the Computer-Aided Traffic Control System (COMTRAC). These contributions helped achieve the Shinkansen's punctual and safe operation. In 1977, Hitachi completed
7885-473: The world's three largest manufacturers by revenue all being Japanese companies by 1987, amongst which Hitachi was counted. Hitachi Europe, Ltd. was established in 1982. In 2001, the contactless fare card system Suica was introduced at 424 JR East stations throughout the Greater Tokyo Area. While the card itself was developed using Sony 's FeliCa system, Hitachi was responsible for building
7980-503: 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
8075-662: The “Top 500 Global Brands” released by British consulting firm Brand finance, LG's brand value ranking rose from 90th to 83rd from the previous year. LG Corporation was established as Lak Hui Chemical Industrial Corp. in 1947 by Koo In-hwoi . In 1952, Lak Hui ( 락희 ) (pronounced "Lucky"; now LG Chem) became the first South Korean company to enter the plastics industry . As the company expanded its plastics business, it established GoldStar Co. Ltd. (now LG Electronics Inc.) in 1958. Both companies Lucky and GoldStar merged to form Lucky-Goldstar in 1983. GoldStar produced South Korea's first radio . Many consumer electronics were sold under
8170-537: Was also transferred, becoming part of Mitsubishi Power. Other former businesses Hitachi had had include the following: Hitachi has research partnerships with several universities, and funds research centres within these universities. Hitachi-UTokyo Lab., which is a joint research centre with the Faculty of Engineering , University of Tokyo , focuses on the realisation of data-driven and more efficient society (Former Chairman and UTokyo alumnus Hiroaki Nakanishi coined
8265-544: Was announced that Koo Kwang-mo, the nephew and adopted son of Koo Bon-moo, will be the new CEO of LG. Koo Bon-moo adopted his nephew in 2004, after losing his only son in 1994, citing "a family tradition of male-only succession". The G-E-F-D-E-C-C' jingle was produced by Musikvergnuegen and written by Walter Werzowa (who had previously composed the Intel bong ) in 2008. The jingle has been featured in LG commercials and devices and
8360-585: Was completed in March 2012. In January 2012, Hitachi announced it would stop producing televisions in Japan. In September 2012, Hitachi announced that it had invented a long-term data solution out of quartz glass that was capable of preserving information for millions of years. In October 2012, Hitachi agreed to acquire the United Kingdom-based nuclear energy company Horizon Nuclear Power , which plans to construct up to six nuclear power plants in
8455-438: Was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for the seven multinational companies that dominated the global petroleum industry from the mid-1940s to the mid-1970s. The nationalization of the Iranian oil industry in 1951 by Iranian Prime Minister Mohammad Mosaddegh and the subsequent boycott of Iranian oil by all companies had dramatic consequences for Iran and
8550-667: Was founded as an electrical machinery manufacturing subsidiary of the Kuhara Mining Plant in Hitachi, Ibaraki by engineer Namihei Odaira in 1910. It started as an independent company under its current name in 1920. Hitachi is listed on the Tokyo Stock Exchange and is a key component of the Nikkei 225 and TOPIX Core30 indices. As of June 2024, it has a market capitalisation of 16.9 trillion yen, making it
8645-448: 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
8740-536: Was integrated with Hitachi Vantara in 2019. On November 1, 2023, Hitachi spun off Hitachi Vantara LLC's digital solutions business into a new company, Hitachi Digital Services; Hitachi Vantara now focuses on its storage and hybrid cloud-centric data infrastructure services portfolio. Among other things, Hitachi Metals supplies materials for aircraft engines and fuselage components (e.g. landing gear), along with finished components for same and other aerospace applications. It also provides materials, components and tools for
8835-546: 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
8930-725: Was later terminated in 2021. In 2017, KKR also bought Hitachi's power tools subsidiary Hitachi Koki for US$ 1.3 billion, changing its name to Koki Holdings (HiKOKI) and marketing its tools as Metabo HPT in the US market. In 2018, Hitachi stopped selling televisions in Japan because its market share had dropped to 1%, opting to sell Sony TVs through its existing dealer network. On March 14, 2018, Zoomdata announced its partnership with Hitachi INS Software to help develop big data analytics market in Japan. In December 2018, Hitachi Ltd. announced it would take over 80% of ABB 's power grid division for $ 6.4 billion renaming it Hitachi-ABB Power Grids in
9025-513: Was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore, the United States turned to foreign oil sources, which had a significant impact on the recovery of the West after World War II. Most of the world's oil was found in Latin America and the Middle East, particularly in the Arab states of the Persian Gulf. This increase in non-American production
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