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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".

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121-635: Motorola, Inc. ( / ˌ m oʊ t ə ˈ r oʊ l ə / ) was an American multinational telecommunications company based in Schaumburg, Illinois . It was founded in 1928 as Galvin Manufacturing Corporation by brothers Paul and Joseph Galvin. The company changed its name to Motorola in 1947. After having lost $ 4.3 billion from 2007 to 2009, Motorola was split into two independent public companies, Motorola Mobility and Motorola Solutions , on January 4, 2011. The reorganization

242-526: A French defense firm. Motorola's biometric business unit was headquartered in Anaheim, California. The deal closed in April 2009. The unit became part of Sagem Morpho , which was renamed MorphoTrak . On March 26, 2008, Motorola's board of directors approved a split into two different publicly traded companies. This came after talk of selling the company to another corporation. These new companies would comprise

363-501: A GSM terminal in 1992. On January 29, 1988, Motorola sold its Arcade, New York facility and automotive alternators, electromechanical speedometers and tachometers products to Prestolite Electric . In 1996, Motorola released the Motorola StarMax , which was a Macintosh clone that was licensed by Apple and it came with System 7 . However, with the return of Steve Jobs to Apple in 1997, Apple released Mac OS 8 . Because

484-706: A ban on the use of water that lasted three days and affected almost 5000 people in the area. Motorola was found to be the main source of the TCE, an industrial solvent that is thought to cause cancer. The TCE contamination was caused by a faulty blower on an air stripping tower that was used to take TCE from the water, and Motorola has attributed the situation to operator error. Of eighteen leading electronics manufacturers in Greenpeace 's Guide to Greener Electronics (October 2010), Motorola shared sixth place with competitors Panasonic and Sony . Motorola scored relatively well on

605-766: 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

726-958: A common Anglo-American vision of the postwar world, as formalized by the Atlantic Charter . At the Second Inter-Allied Meeting in London in September 1941, the eight European governments in exile, together with the Soviet Union and representatives of the Free French Forces, unanimously adopted adherence to the common principles of policy set forth in the Atlantic Charter. In December, Japan attacked American and British territories in Asia and

847-508: 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

968-612: A domination of the world completely different from any known in world history. The domination at which the Nazis aim is not limited to the displacement of the balance of power and the imposition of the supremacy of one nation. It seeks the systematic and total destruction of those conquered by Hitler and it does not treaty with the nations which it has subdued. He destroys them. He takes from them their whole political and economic existence and seeks even to deprive them of their history and culture. He wishes only to consider them as vital space and

1089-575: A formalized group upon the Declaration by United Nations on 1 January 1942, which was signed by 26 nations around the world; these ranged from governments in exile from the Axis occupation to small nations far removed from the war. The Declaration officially recognized the Big Three and China as the "Four Powers", acknowledging their central role in prosecuting the war; they were also referred to as

1210-429: 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

1331-546: A further 4,000 job cuts in June and another 20% cut of its research division a few days later. In July 2008, a large number of executives left Motorola to work on Apple Inc. 's iPhone . The company's handset division was also put on offer for sale. Also that month, analyst Mark McKechnie from American Technology Research said that Motorola "would be lucky to fetch $ 500 million" for selling its handset business. Analyst Richard Windsor said that Motorola might have to pay someone to take

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1452-549: A key role in achieving victory. A series of conferences between Allied leaders, diplomats, and military officials gradually shaped the makeup of the alliance, the direction of the war, and ultimately the postwar international order. Relations between the United Kingdom and the United States were especially close , with their bilateral Atlantic Charter forming the groundwork of their alliance. The Allies became

1573-664: A massive air attack on Germany, but Stalin kept wanting more. Although the U.S. had a strained relationship with the USSR in the 1920s, relations were normalized in 1933. The original terms of the Lend-Lease loan were amended towards the Soviets, to be put in line with British terms. The United States would now expect interest with the repayment from the Soviets, following the initiation of the Operation Barbarossa , at

1694-490: 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

1815-669: A separate colony. British Malaya covers the areas of Peninsular Malaysia and Singapore , while British Borneo covers the area of Brunei , including Sabah and Sarawak of Malaysia. British Hong Kong consisted of Hong Kong Island , the Kowloon Peninsula , and the New Territories . Territories controlled by the Colonial Office , namely the Crown Colonies , were controlled politically by

1936-599: A vacant territory over which he has every right. The human beings who constitute these nations are for him only cattle. He orders their massacre or migration. He compels them to make room for their conquerors. He does not even take the trouble to impose any war tribute on them. He just takes all their wealth and, to prevent any revolt, he scientifically seeks the physical and moral degradation of those whose independence he has taken away. France experienced several major phases of action during World War II: In Africa these included: French West Africa , French Equatorial Africa ,

2057-410: 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

2178-865: 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

2299-552: The British West Indies , British Honduras , British Guiana and the Falkland Islands . The Dominion of Newfoundland was directly ruled as a royal colony from 1933 to 1949, run by a governor appointed by London who made the decisions regarding Newfoundland. British India included the areas and peoples covered by later India , Bangladesh , Pakistan and (until 1937) Burma/Myanmar , which later became

2420-848: 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

2541-464: The Moon on a Motorola transceiver. In 1973, Motorola demonstrated the first hand-held portable telephone. In 1974, Motorola introduced its first microprocessor, the 8-bit MC6800 , used in automotive, computing and video game applications. The 6800 was the basis for the more popular MOS Technology 6502 which was made by former Motorola employees. That same year, Motorola sold its television business to

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2662-753: The Motorola Droid , was released in 2009 (the GSM version launched a month later, in Europe, as the Motorola Milestone). The handset division, along with the cable set-top box and modem businesses, were later spun off into Motorola Mobility. Motorola was founded in Chicago, Illinois , as Galvin Manufacturing Corporation (at 847 West Harrison Street) in 1928. Paul Galvin wanted a brand name for Galvin Manufacturing Corporation's new car radio, and created

2783-576: The " trusteeship of the powerful", and later as the " Four Policemen " of the United Nations. Many more countries joined through to the final days of the war, including colonies and former Axis nations. After the war ended, the Allies, and the Declaration that bound them, would become the basis of the modern United Nations ; one enduring legacy of the alliance is the permanent membership of

2904-500: The 1920s, culminating in the invasion of Manchuria in 1931. The League of Nations strongly condemned the attack as an act of aggression against China; Japan responded by leaving the League in 1933. The second Sino-Japanese War erupted in 1937 with Japan's full-scale invasion of China. The League of Nations condemned Japan's actions and initiated sanctions; the United States, which had attempted to peacefully negotiate for peace in Asia,

3025-617: 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

3146-557: The Allies varied during the course of the war. When the conflict broke out on 1 September 1939, the Allied coalition consisted of the United Kingdom, France , and Poland , as well as their respective dependencies , such as British India . They were joined by the independent dominions of the British Commonwealth : Canada , Australia , New Zealand and South Africa . Consequently, the initial alliance resembled that of

3267-682: The American Harry Hopkins . It is also often called the "Strange Alliance", because it united the leaders of the world's greatest capitalist state (the United States), the greatest socialist state (the Soviet Union) and the greatest colonial power (the United Kingdom). Relations between them resulted in the major decisions that shaped the war effort and planned for the postwar world. Cooperation between

3388-465: The Big Three leaders, although they were not enough to break the alliance during wartime. In 1942 Roosevelt proposed becoming, with China, the Four Policemen of world peace. Although the 'Four Powers' were reflected in the wording of the Declaration by United Nations , Roosevelt's proposal was not initially supported by Churchill or Stalin. Division emerged over the length of time taken by

3509-691: The British Government during the Second World War and made part of the British Army structure. It was mostly Greek Cypriot volunteers and Turkish Cypriot inhabitants of Cyprus but also included other Commonwealth nationalities. On a brief visit to Cyprus in 1943, Winston Churchill praised the "soldiers of the Cyprus Regiment who have served honourably on many fields from Libya to Dunkirk". About 30,000 Cypriots served in

3630-655: The Cyprus Regiment. The regiment was involved in action from the very start and served at Dunkirk , in the Greek Campaign (about 600 soldiers were captured in Kalamata in 1941), North Africa ( Operation Compass ), France, the Middle East and Italy. Many soldiers were taken prisoner especially at the beginning of the war and were interned in various PoW camps ( Stalag ) including Lamsdorf ( Stalag VIII-B ), Stalag IVC at Wistritz bei Teplitz and Stalag 4b near Most in

3751-541: The Czech Republic. The soldiers captured in Kalamata were transported by train to prisoner of war camps. After Germany invaded Poland, France declared war on Germany on 3 September 1939. In January 1940, French Prime Minister Édouard Daladier made a major speech denouncing the actions of Germany: At the end of five months of war, one thing has become more and more clear. It is that Germany seeks to establish

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3872-406: The Declaration was signed by Iraq, Iran, Brazil, Bolivia and Colombia. A Tripartite Treaty of Alliance with Britain and the USSR formalised Iran's assistance to the Allies. In Rio de Janeiro , Brazilian dictator Getúlio Vargas was considered near to fascist ideas, but realistically joined the United Nations after their evident successes. In 1944, Liberia and France signed. The French situation

3993-551: 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

4114-737: The First World War . As Axis forces began invading northern Europe and the Balkans , the Allies added the Netherlands , Belgium , Norway , Greece , and Yugoslavia . The Soviet Union, which initially had a nonaggression pact with Germany and participated in its invasion of Poland , joined the Allies after the German invasion of the Soviet Union in June 1941. The United States, while providing some materiel support to European Allies since September 1940, remained formally neutral until

4235-673: The German war machine. On 1 September 1939, Germany invaded Poland ; two days later Britain and France declared war on Germany. Roughly two weeks after Germany's attack, the Soviet Union invaded Poland from the east. Britain and France established the Anglo-French Supreme War Council to coordinate military decisions. A Polish government-in-exile was set up in London, joined by hundreds of thousands of Polish soldiers, which would remain an Allied nation until

4356-575: 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

4477-611: The Japan-based Matsushita – the parent company of Panasonic . In 1980, Motorola's next generation 32-bit microprocessor, the MC68000 , led the wave of technologies that spurred the computing revolution in 1984, powering devices from companies such as Apple , Commodore , Atari , Sun , and Hewlett-Packard . In September 1983, the U.S. Federal Communications Commission (FCC) approved the DynaTAC 8000X telephone,

4598-599: The Japanese attack on Pearl Harbor in December 1941, after which it declared war and officially joined the Allies. China had already been at war with Japan since 1937 , and formally joined the Allies in December 1941. The Allies were led by the so-called "Big Three"—the United Kingdom, the Soviet Union, and the United States—which were the principal contributors of manpower, resources, and strategy, each playing

4719-511: The Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States. Corporations can legally engage in tax avoidance through their choice of jurisdiction but must be careful to avoid illegal tax evasion . Corporations that are broadly active across

4840-558: 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,

4961-465: The Pacific, resulting in the U.S. formally entering the war as an Allied power. Still reeling from Japanese aggression, China declared war on all the Axis powers shortly thereafter. By the end of 1941, the main lines of World War II had formed. Churchill referred to the "Grand Alliance" of the United Kingdom, the United States, and the Soviet Union, which together played the largest role in prosecuting

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5082-453: The Soviet Union, were accepted as members of the United Nations as a way to provide greater influence to Stalin, who had only Yugoslavia as a communist partner in the alliance. British Prime Minister, Neville Chamberlain delivered his Ultimatum Speech on 3 September 1939 which declared war on Germany , a few hours before France. As the Statute of Westminster 1931 was not yet ratified by

5203-464: 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

5324-636: The Treaty of Versailles and made claims over German-populated Austria and the German-populated territories of Czechoslovakia. The likelihood of war was high, but none of the major powers had the appetite for another conflict; many governments sought to ease tensions through nonmilitary strategies such as appeasement . Japan, which was a principal allied power in the First World War, had since become increasingly militaristic and imperialistic; parallel to Germany, nationalist sentiment increased throughout

5445-620: The U.N. Security Council , which is made up exclusively of the principal Allied powers that won the war. The victorious Allies of World War I —which included what would become the Allied powers of the Second World War—had imposed harsh terms on the opposing Central Powers in the Paris Peace Conference of 1919–1920 . Germany resented signing the Treaty of Versailles , which required that it take full responsibility for

5566-636: 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

5687-476: The U.S. state of Illinois) included the Village of River Forest, Village of Bellwood Police Department, City of Evanston Police, Illinois State Highway Police, and Cook County (Chicago area) Police. Many of Motorola's products have been radio-related, starting with a battery eliminator for battery powered radios (during the burgeoning electrification of rural homes), through the first hand-held walkie-talkie in

5808-586: The UK and therefore also entered hostilities with Britain's declaration of war. At the outbreak of World War II, the British Indian Army numbered 205,000 men. Later during World War II, the British Indian Army became the largest all-volunteer force in history, rising to over 2.5 million men in size. Indian soldiers earned 30 Victoria Crosses during the Second World War. It suffered 87,000 military casualties (more than any Crown colony but fewer than

5929-611: The United Kingdom and the United States had cooperated in a number of ways, notably through the destroyers-for-bases deal in September 1940 and the American Lend-Lease program, which provided Britain and the Soviet Union with war materiel beginning in October 1941. The British Commonwealth and, to a lesser extent, the Soviet Union reciprocated with a smaller Reverse Lend-Lease program. The First Inter-Allied Meeting took place in London in early June 1941 between

6050-453: The United Kingdom and the United States was especially close and included forming a Combined Chiefs of Staff . There were numerous high-level conferences ; in total Churchill attended 14 meetings, Roosevelt 12, and Stalin 5. Most visible were the three summit conferences that brought together the three top leaders. The Allied policy toward Germany and Japan evolved and developed at these three conferences. There were many tensions among

6171-404: The United Kingdom). The UK suffered 382,000 military casualties. Kuwait was a protectorate of the United Kingdom formally established in 1899. The Trucial States were British protectorates in the Persian Gulf. Palestine was a mandate dependency created in the peace agreements after World War I from the former territory of the Ottoman Empire , Iraq . The Cyprus Regiment was formed by

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6292-420: The United Kingdom, the four co-belligerent British Dominions (Canada, Australia, New Zealand and South Africa), the eight governments in exile ( Belgium , Czechoslovakia , Greece , Luxembourg , the Netherlands , Norway , Poland , Yugoslavia ) and Free France . The meeting culminated with the Declaration of St James's Palace , which set out a first vision for the postwar world. In June 1941, Hitler broke

6413-543: The United Kingdom. Motorola also developed the world's first GPRS cell phone. In August 2000, Motorola acquired Printrak International Inc. for $ 160 million. In doing so, Motorola not only acquired computer aided dispatch and related software, but also acquired Automated fingerprint identification system software. With recent acquisitions from that year, Motorola reached its peak employment of 150,000 employees worldwide. Two years later, employment would be at 93,000 due to layoffs and spinoffs. In June 2005, Motorola overtook

6534-450: 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

6655-506: 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

6776-558: 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

6897-461: 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

7018-407: 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

7139-475: 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

7260-401: 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

7381-536: The Western Allies to establish a second front in Europe. Stalin and the Soviets used the potential employment of the second front as an 'acid test' for their relations with the Anglo-American powers. The Soviets were forced to use as much manpower as possible in the fight against the Germans, whereas the United States had the luxury of flexing industrial power, but with the "minimum possible expenditure of American lives". Roosevelt and Churchill opened ground fronts in North Africa in 1942 and in Italy in 1943, and launched

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7502-408: 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 ,

7623-529: The business units of Motorola Mobile Devices and Motorola Broadband & Mobility Solutions. Originally it was expected that this action would be approved by regulatory bodies and complete by mid-2009, but the split was delayed due to company restructuring problems and the 2008–2009 extreme economic downturn. On February 11, 2010, Motorola announced it would separate into two independent, publicly traded companies. The cell phone and cable television equipment businesses would spin off to form Motorola Mobility , while

7744-433: The chemicals criteria and has a goal to eliminate PVC plastic and Brominated flame retardants (BFRs), though only in mobile devices and not in all its products introduced after 2010, despite the fact that Sony Ericsson and Nokia were already there. All of its mobile phones were now PVC-free and it had two PVC and BFR-free mobile phones, the A45 ECO and the GRASP; all chargers were also free from PVC and BFRs. The company

7865-405: The clone makers' licenses were valid only for Apple's System 7 operating system, Apple's release of Mac OS 8 left the clone manufacturers unable to ship a current Mac OS version without negotiation with Apple. A heated telephone conversation between Jobs and then Motorola CEO Christopher Galvin resulted in the termination of Motorola's clone contract, the discontinuation of the Motorola StarMax, and

7986-579: 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

8107-604: 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

8228-425: The company reported a profit of $ 162 million, which compared very favorably to the $ 26 million earned for the same period the year before. Its Mobile Devices division reported, for the first time in years, earnings of $ 87 million. Motorola, Inc., along with the Arizona Water Co. had been identified as the sources of trichloroethylene (TCE) contamination that took place in Scottsdale, Arizona . The malfunction led to

8349-510: 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

8470-643: 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

8591-408: 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

8712-745: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Allies of World War II The Allies , formally referred to as the United Nations from 1942, were an international military coalition formed during World War II (1939–1945) to oppose the Axis powers . Its principal members by the end of 1941 were the " Big Four " – the United Kingdom , United States , Soviet Union , and China . Membership in

8833-624: The declaration; the Big Four were listed first: The United Nations began growing immediately after its formation. In 1942, Mexico, the Philippines and Ethiopia adhered to the declaration. Ethiopia had been restored to independence by British forces after the Italian defeat in 1941. The Philippines, still owned by Washington but granted international diplomatic recognition, was allowed to join on 10 June despite its occupation by Japan. In 1943,

8954-464: The division off the company's hands, and that Motorola may even exit the handset market altogether. Its global market share has been on the decline; from 18.4% of the market in 2007 the company had a share of just 6.0% by Q1 2009, but at last, Motorola scored a profit of $ 26 million in Q2 and showed an increase of 12% in stocks for the first time after losses in many quarters. During the second quarter of 2010,

9075-749: The end of the war—the United States were not looking to support any "postwar Soviet reconstruction efforts", which eventually manifested into the Molotov Plan . At the Tehran conference , Stalin judged Roosevelt to be a "lightweight compared to the more formidable Churchill". During the meetings from 1943 to 1945, there were disputes over the growing list of demands from the USSR. Tensions increased further when Roosevelt died and his successor Harry Truman rejected demands put forth by Stalin. Roosevelt wanted to play down these ideological tensions. Roosevelt felt he "understood Stalin's psychology", stating "Stalin

9196-554: The end. After a quiet winter, Germany began its invasion of Western Europe in April 1940, quickly defeating Denmark, Norway, Belgium, the Netherlands, and France. All the occupied nations subsequently established a government-in-exile in London, with each contributing a contingent of escaped troops. Nevertheless, by roughly one year since Germany's violation of the Munich Agreement, Britain and its Empire stood alone against Hitler and Mussolini. Before they were formally allied,

9317-481: 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

9438-416: 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

9559-563: The intellectual property of Sendo for $ 30,000 and paid £362,575 for the plant, machinery and equipment. In June 2006, Motorola acquired the software platform ( AJAR ) developed by the British company TTP Communications plc. Later in 2006, the firm announced a music subscription service named iRadio . The technology came after a break in a partnership with Apple Computer (which in 2005 had produced an iTunes compatible cell phone ROKR E1 , and most recently, mid-2007, its own iPhone ). iRadio

9680-572: 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

9801-415: 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

9922-460: 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)

10043-474: 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 ,

10164-529: The long-favored Apple being demoted to "just another customer" mainly for PowerPC CPUs. Apple (and Jobs) did not want Motorola to limit the PowerPC CPU supply so as retaliation, Apple and IBM expelled Motorola from the AIM alliance and forced Motorola to stop producing any PowerPC CPUs, leaving IBM to make all future PowerPC CPUs. However, Motorola was later reinstated into the alliance in 1998. In 1998, Motorola

10285-545: The main advocates of appeasement, decided that Hitler had no intention to uphold diplomatic agreements and responded by preparing for war. On 31 March 1939, Britain formed the Anglo-Polish military alliance in an effort to avert an imminent German attack on Poland; the French likewise had a long-standing alliance with Poland since 1921 . The Soviet Union , which had been diplomatically and economically isolated by much of

10406-434: The market with cheap oil. This caused a worldwide drop in oil prices, hence the "third oil shock" or "counter-shock." However, this shock represented something much bigger—the end of OPEC's dominance and its control over oil prices. Iraqi President Saddam Hussein decided to attack Kuwait. The invasion sparked a crisis in the Middle East, prompting Saudi Arabia to request assistance from the United States. The United States sent

10527-543: 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

10648-675: The name "Motorola" by linking "motor" (from motor car) with "ola" (from Victrola ), which was also a popular ending for many companies at the time, e.g. Moviola , Crayola . The company sold its first Motorola branded radio on June 23, 1930, to Herbert C. Wall of Fort Wayne, Indiana, for $ 30. The Motorola brand name became so well known that Galvin Manufacturing Corporation later changed its name to Motorola, Inc., in 1947. Galvin Manufacturing Corporation began selling Motorola car-radio receivers to police departments and municipalities in November 1930. The company's first public safety customers (all in

10769-655: The non-aggression agreement with Stalin and Axis forces invaded the Soviet Union , which consequently declared war on Germany and its allies. Britain agreed to an alliance with the Soviet Union in July, with both nations committing to assisting one another by any means, and to never negotiate a separate peace. The following August saw the Atlantic Conference between American President Franklin Roosevelt and British Prime Minister Winston Churchill , which defined

10890-432: The parliaments of Australia and New Zealand, the British declaration of war on Germany also applied to those dominions . The other dominions and members of the British Commonwealth declared war from 3 September 1939, all within one week of each other; they were Canada , British India and South Africa . During the war, Churchill attended seventeen Allied conferences at which key decisions and agreements were made. He

11011-560: 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

11132-611: 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

11253-410: The remainder of Motorola, Inc., which comprised the government and enterprise equipment businesses, would become Motorola Solutions . The split was closed on January 4, 2011. Motorola Mobility was eventually acquired by Google on May 22, 2012. Google later sold Motorola Mobility's cable equipment business to Arris Group in December 2012, and Motorola Mobility itself to Lenovo on October 30, 2014. At

11374-482: The severity of the economic crisis on the Treaty of Versailles. The far-right Nazi Party led by Adolf Hitler , which had formed shortly after the peace treaty, exploited growing popular resentment and desperation to become the dominant political movement in Germany. By 1933, they gained power and rapidly established a totalitarian regime known as Nazi Germany . The Nazi regime demanded the immediate cancellation of

11495-501: 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

11616-468: The time of its split, Motorola had three divisions: Motorola's handset division recorded a loss of $ 1.2 billion in the fourth quarter of 2007, while the company as a whole earned $ 100 million during that quarter. It lost several key executives to rivals, and the website TrustedReviews called the company's products repetitive and un-innovative. Motorola laid off 3,500 workers in January 2008, followed by

11737-481: The unchallenged Japanese expansion in the East, particularly considering their defeat in previous wars with Japan; the Soviets also recognized, as the U.S. and Britain had suggested, the advantages of a two-front war . Franklin D. Roosevelt , Winston Churchill , and Joseph Stalin were The Big Three leaders. They were in frequent contact through ambassadors, top generals, foreign ministers and special emissaries such as

11858-531: The value of World War II military production contracts. Motorola went public in 1943, and became Motorola, Inc. in 1947. At that time Motorola's main business was producing and selling televisions and radios. The last plant was listed in Quincy, Illinois at 1400 North 30th Street where 1,200 employees made radio assemblies for both homes and automobiles. In 1969, Neil Armstrong spoke the famous words "That's one small step for man, one giant leap for mankind" from

11979-562: The war, Britain could remain the sole great power in Europe facing the Communist threat, as it was in 1940 and 1941 against Nazism. During the early part of 1945, Peru, Chile, Paraguay, Venezuela, Uruguay, Turkey, Egypt, Saudi Arabia, Lebanon, Syria (these latter two French colonies had been declared independent states by British occupation troops, despite protests by Pétain and later De Gaulle) and Ecuador became signatories. Ukraine and Belarus , which were not independent states but parts of

12100-488: The war, lose a significant portion of territory, and pay costly reparations, among other penalties. The Weimar Republic , which formed at the end of the war and subsequently negotiated the treaty, saw its legitimacy shaken, particularly as it struggled to govern a greatly weakened economy and humiliated populace. The Wall Street Crash of 1929 , and the ensuing Great Depression , led to political unrest across Europe, especially in Germany, where revanchist nationalists blamed

12221-489: The war. The alliance was largely one of convenience for each member: the U.K. realized that the Axis powers threatened not only its colonies in North Africa and Asia but also the homeland . The United States felt that the Japanese and German expansion should be contained, but ruled out force until Japan's attack. The Soviet Union, having been betrayed by the Axis attack in 1941, greatly despised German belligerence and

12342-529: The world in 1940, defense electronics, cellular infrastructure equipment, and mobile phone manufacturing. In the same year, the company built its research and development program with Dan Noble , a pioneer in FM radio and semiconductor technologies, who joined the company as director of research. The company produced the hand-held AM SCR-536 radio during World War II , which was vital to Allied communication. Motorola ranked 94th among United States corporations in

12463-496: 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

12584-573: 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

12705-692: The world's first commercial cellular device. By 1998, cellphones accounted for two thirds of Motorola's gross revenue. In 1986 Motorola acquired Storno resulting in a whole new range of innovative communication products for the new owner, including the NMT , an automatic cellular phone system, and made Motorola a more central player in the early stages of the GSM standardization process in 1987. With this addition Motorola strengthened its position in Europe significantly. As Motorola's European development arm, Storno developed

12826-517: The world, had sought an alliance with the western powers, but Hitler preempted a potential war with Stalin by signing the Nazi–Soviet non-aggression pact in August 1939. In addition to preventing a two-front war that had battered its forces in the last world war, the agreement secretly divided the independent states of Central and Eastern Europe between the two powers and assured adequate oil supplies for

12947-503: 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

13068-557: Was "the most important of the Allied leaders during the first half of World War II". British West Africa and the British colonies in East and Southern Africa participated, mainly in the North African, East African and Middle-Eastern theatres. Two West African and one East African division served in the Burma Campaign . Southern Rhodesia was a self-governing colony, having received responsible government in 1923. It

13189-793: Was a pioneer in cellular telephones. Also known as the Personal Communication Sector (PCS) prior to 2004, it pioneered the "mobile phone" with the first truly mobile "brick phone" DynaTAC , "flip phone" with the MicroTAC as well as the "clam phone" with the StarTAC in the mid-1990s. It had staged a resurgence by the mid-2000s with the RAZR , but lost market share in the second half of that decade. Later it focused on smartphones using Google 's open-source Android mobile operating system. The first phone to use Android 2.0 "Eclair" ,

13310-538: Was also increasing the proportion of recycled materials used in its products. For example, the housings for the MOTO W233 Renew and MOTOCUBO A45 Eco mobile phones contained plastic from post-consumer recycled water cooler bottles. According to the company's information, all of Motorola's newly designed chargers met the current Energy Star requirements and exceed the requirements for standby/no-load modes by at least 67%. Multinational corporation Most of

13431-438: 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

13552-524: Was especially angered by the invasion and sought to support China. In March 1939, Germany took over Czechoslovakia , just six months after signing the Munich Agreement , which sought to appease Hitler by ceding the mainly ethnic German Czechoslovak borderlands; while most of Europe had celebrated the agreement as a major victory for peace, the open flaunting of its terms demonstrated the failure of appeasement. Britain and France, which had been

13673-448: 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

13794-546: 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

13915-457: Was not a sovereign dominion. It governed itself internally and controlled its own armed forces, but had no diplomatic autonomy, and, therefore, was officially at war as soon as Britain was at war. The Southern Rhodesian colonial government issued a symbolic declaration of war nevertheless on 3 September 1939, which made no difference diplomatically but preceded the declarations of war made by all other British dominions and colonies. These included:

14036-550: Was overtaken by Nokia as the world's biggest seller of mobile phone handsets. In 1999, Motorola separated a portion of its semiconductor business—the Semiconductor Components Group (SCG)-- and formed onsemi (then ON Semiconductor ), whose headquarters were located in Phoenix, Arizona . In June 2000, Motorola and Cisco supplied the world's first commercial GPRS cellular network to BT Cellnet in

14157-796: Was structured with Motorola Solutions legally succeeding Motorola, Inc., and Motorola Mobility being spun off. Motorola designed and sold wireless network equipment such as cellular transmission base stations and signal amplifiers. Motorola's home and broadcast network products included set-top boxes , digital video recorders , and network equipment used to enable video broadcasting, computer telephony, and high-definition television . Its business and government customers consisted mainly of wireless voice and broadband systems (used to build private networks), and public safety communications systems like Astro and Dimetra . These businesses, except for set-top boxes and cable modems , became part of Motorola Solutions. Motorola's wireless telephone handset division

14278-564: 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

14399-462: Was to have many similarities with existing satellite radio services (such as Sirius and XM Radio ) by offering live streams of commercial-free music content. Unlike satellite services, however, iRadio content would be downloaded via a broadband internet connection. However, iRadio was never commercially released. Greg Brown became Motorola's chief executive officer in 2008. In October 2008, Motorola agreed to sell its Biometrics business to Safran ,

14520-416: Was too anxious to prove a point ... he suffered from an inferiority complex." During December 1941, Roosevelt devised the name "United Nations" for the Allies and Churchill agreed. He referred to the Big Three and China as the " Four Policemen " repeatedly from 1942. The alliance was formalised in the Declaration by United Nations signed on 1 January 1942. There were the 26 original signatories of

14641-469: Was very confused. Free French forces were recognized only by Britain, while the United States considered Vichy France to be the legal government of the country until Operation Overlord , while also preparing U.S. occupation francs . Winston Churchill urged Roosevelt to restore France to its status of a major power after the liberation of Paris in August 1944; the Prime Minister feared that after

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