Misplaced Pages

#986013

115-685: Nokia Corporation is a Finnish multinational telecommunications , information technology , and consumer electronics corporation, originally established as a pulp mill in 1865. Nokia's main headquarters are in Espoo , Finland, in the Helsinki metropolitan area , but the company's actual roots are in the Tampere region of Pirkanmaa . In 2020, Nokia employed approximately 92,000 people across over 100 countries, did business in more than 130 countries, and reported annual revenues of around €23 billion. Nokia

230-401: A forestry company. Later, Mechelin's wish to expand into the electricity business was at first thwarted by Idestam's opposition, but Mechelin managed to convince most shareholders of his plans and became the company chairman (1898–1914), thus being able to realise his visions. Mechelin was active in civil society and President of the current University of Art and Design Helsinki and of

345-574: A joint venture with Salora Oy in 1979, which became the foundation of its future mobile phone business. In 1981, Mobira launched the Nordic Mobile Telephone (NMT) service, the world's first international cellular network and the first to allow international roaming . In 1982, Mobira launched the Mobira Senator car phone, Nokia's first mobile phone. At that time, the company had no interest in producing mobile phones, which

460-527: A pulp mill on the shores of the Tammerkoski rapids near the town of Tampere , Finland (then a Grand Duchy under Russian Empire 's rule). A second pulp mill was opened in 1868 near the neighboring town of Nokia , where there were better hydropower resources. In 1871, Idestam, together with a friend Leo Mechelin , formed a shared company and called it Nokia Ab (in Swedish , Nokia Company being

575-483: A US$ 970 million framework deal for delivery between 2014 and 2015. On 17 November 2014, Nokia Technologies head Ramzi Haidamus disclosed that the company planned to re-enter the consumer electronics business as an original design manufacturer , licensing in-house hardware designs and technologies to third-party manufacturers. Haidamus stated that the Nokia brand was "valuable" but "is diminishing in value, and that's why it

690-766: 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

805-508: 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

920-429: 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

1035-565: A large range of colourful and replaceable back covers called Xpress-on. One of the earliest fashion phones in 1992, from Swiss watchmaker Swatch , was based on Nokia's 101 handset. The company would also form the Vertu division, creating luxury mobile handsets. In April 1996, Nokia claimed its 447Xav and 447K monitors to be the first with stereo speakers and a subwoofer . In May 1999, Nokia introduced their first wireless LAN products. In January 2000, ViewSonic acquired Nokia Display Products,

1150-538: A major market for Nokia, yielding high profits. The U.S. government became increasingly concerned of the possible export of items it deemed as high technology, such as digital telephone exchanges, to the Soviet Union in the 1980s. This led to Finland entering the Coordinating Committee for Multilateral Export Controls in 1987. This was a demonstration of Finland balancing between both sides, as it

1265-677: A member of parliament (House of Nobles) 1904, welcomed by a celebrating crowd of 10,000 people. In a secret meeting of the Kagaali , Mechelin had written a petition against the draft of Finns to the Russian army, which collected almost 500,000 signatures. His coalition, the Constitutionals, managed to end the draft through boycott. Born in Hamina in 1839, the son of Gustaf Johan Mechelin and Amanda Gustava Costiander, Leo Mechelin studied at

SECTION 10

#1732772389987

1380-490: 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

1495-607: A new operating system for PDAs and smart mobile phones as a successor of EPOC32 . They released the Nokia 9210 Communicator running Symbian OS in 2001 and later that year created the Symbian Series 60 platform, later introducing it with their first camera phone , the Nokia 7650 . Both Nokia and Symbian eventually became the largest smartphone hardware and software maker, respectively, and in February 2004, Nokia became

1610-641: A new three-digit naming system for mobile phone products and stop using letters, effectively ending the Nseries , Eseries , and short-lived Cseries . That same day the Nokia 500 was introduced with the new system. Nokia last used three-digit names on analogue phones in the 1990s. When the Lumia 920 was announced in September 2012, it was seen by the press as the first high-end Windows Phone that could challenge rivals due to its advanced feature set. Elop said that

1725-561: A partnership with the Finnish Rubber Works and Kaapelitehdas ( the Cable Factory ), all now jointly under the leadership of Polón. The rubber company grew rapidly when it moved to the Nokia region in the 1930s to take advantage of the electricity supply, and the cable company soon did too. Nokia at the time also made respirators for both civilian and military use, from the 1930s well into the early 1990s. In 1967,

1840-500: A result. Finland was now also experiencing its worst recession in living memory , and the collapse of the Soviet Union, a major customer, made matters worse. Vuorilehto quit in January 1992 and was replaced by Jorma Ollila , who had been the head of the mobile phone business from 1990 and advised against selling that division. Ollila decided to turn Nokia into a " telecom -oriented" company, and he eventually got rid of divisions like

1955-422: A series of poor management decisions and soon saw its share of the mobile phone market drop sharply. After a partnership with Microsoft and Nokia's subsequent market struggles, in 2014, Microsoft bought Nokia's mobile phone business, incorporating it as Microsoft Mobile . After the sale, Nokia began to focus more on its telecommunications infrastructure business and on Internet of things technologies, marked by

2070-484: A successful and innovative maker of camera phones . The Nokia 3600/3650 was the first camera phone on sale in North America in 2003. In April 2005, Nokia partnered with German camera optics maker Carl Zeiss AG . That same month, Nokia introduced the Nseries , which would become its flagship line of smartphones for the next six years. The Nokia N95 was introduced in September 2006, became highly successful, and

2185-410: A tyre producer originally formed as a division of Finnish Rubber Works in 1932, split away from Nokia Corporation in 1988. Two years later, in 1990, Finnish Rubber Works followed suit. In 1991, Nokia sold its computer division, Nokia Data, to UK -based International Computers Limited (ICL), the precursor of Fujitsu Siemens . Investors thought of this as financial trouble and Nokia's stock price sank as

2300-488: A wholly owned subsidiary called Nokia Solutions and Networks, until being rebranded as Nokia Networks soon after. During Nokia's financial struggles, its profitable networking division with Siemens provided much of its income; thus, the purchase proved to be positive, particularly after the sale of its mobile devices unit. After the sale of its mobile devices division, Nokia focused on network equipment through Nokia Networks . In October 2014, Nokia and China Mobile signed

2415-658: Is a public limited company listed on the Nasdaq Helsinki and New York Stock Exchange . It was the world's 415th-largest company measured by 2016 revenues, according to the Fortune Global 500 , having peaked at 85th place in 2009. It is a component of the Euro Stoxx 50 stock market index . The company has operated in various industries over the past 150 years. It was founded as a pulp mill and had long been associated with rubber and cables , but since

SECTION 20

#1732772389987

2530-414: Is for 10-year-olds", stating that N-Gage is more suited to a mature audience. However, the device was a failure, unable to challenge the dominant market leader, Nintendo . Nokia attempted to revive N-Gage as a platform for their S60 smartphones, which eventually launched in 2008. In Q1 2004, Nokia's mobile phone handset market share steeply dropped to 28.9%, down from 34.6% a year earlier. However, by 2006,

2645-523: Is important that we reverse that trend very quickly, imminently". The next day, Nokia unveiled the N1 , an Android tablet manufactured by Foxconn , as its first product following the Microsoft sale. Haidamus emphasized that devices released under these licensing agreements would be held to high standards in production quality, and would "look and feel just like Nokia built it". Nokia CEO Rajeev Suri stated that

2760-410: 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

2875-546: Is the world's third-largest network equipment manufacturer. The company was viewed with national pride by Finns , as its mobile phone business made it by far the largest worldwide company and brand from Finland. At its peak in 2000, Nokia accounted for 4% of the country's GDP , 21% of total exports, and 70% of the Nasdaq Helsinki market capital . 60°13′30″N 24°45′22″E  /  60.225°N 24.756°E  / 60.225; 24.756 Nokia's history dates from 1865, when mining engineer Fredrik Idestam established

2990-865: 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

3105-491: The 808 PureView with a 41-megapixel sensor, in 2012; and the Lumia 920 flagship, which implemented advanced PureView technologies, in 2012. Nokia was one of the pioneers of mobile gaming due to the popularity of Snake , which came preloaded on many products. In 2002, Nokia attempted to break into the handheld gaming market with the N-Gage . Nokia's head of entertainment and media, Ilkka Raiskinen, once said, " Game Boy

3220-980: The British East India Company founded in 1600 and the Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include 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

3335-521: The Datasaab computer division of Swedish aircraft and car manufacturer Saab . Ericsson Information Systems made Alfaskop terminals, typewriters , minicomputers and Ericsson-branded IBM compatible PCs . The merger with Nokia's Information Systems division—which since 1981 had a line of personal computers called MikroMikko —resulted in the name Nokia Data. Nokia also acquired Mobira, a mobile radio telephone manufacturer that had been established in

3450-588: The Finnish Art Society . As a politician he was always highly respected among all parties and citizens, although after the dissolution of the Liberal Party (1885) he never joined any other party. Mechelin demanded peaceful nonviolent resistance and did not bend even during hard times. Leo Mechelin has received several accolades and honorary dedications following the Russian revolutions and

3565-687: The Finnish Declaration of Independence , including several streets named after him such as Mechelininkatu (in Helsinki) and Mechelinintie (in Hamina). Finnish sculptor Walter Runeberg made a sculpture of Mechelin's bust for his 70th birthday. Today the statue sits on the steps to the House of the Estates , which is a major governmental building in central Helsinki. One of his siblings was

Nokia - Misplaced Pages Continue

3680-567: The M61 gas mask first developed in the 1960s. Nokia was now also making professional mobile radios , telephone switches , capacitors and chemicals . After Finland's trade agreement with the Soviet Union in the 1960s, Nokia expanded into the Soviet market. It soon widened trade, ranging from automatic telephone exchanges to robotics among others; by the late 1970s, the Soviet Union became

3795-572: The Nokia Company (1871) with Fredrik Idestam , was the first chairman of the town council of Helsinki (1875–1876 and 1892–1899) and an internationally respected expert on politology and member of peace movement. Emperor Alexander II ennobled Mechelin 1876. Mechelin led the passive resistance in Finland during the first period of oppression (1899–1905) until and even after his banishment (1903), from which officials had to let him return as

3910-641: The Symbian Foundation was closing and that Nokia would take back control of the Symbian operating system under closed licensing. By now Nokia was the only remaining company using the platform, along with carrier NTT DoCoMo in Japan, after both Samsung and Sony Ericsson moved to Android . Meanwhile, in 2010 for Nokia's Linux ambitions, Nokia collaborated with Intel to form the MeeGo project, after

4025-465: The University of Helsinki , gaining his bachelor's and master's degrees in philosophy in 1860, a bachelor's degree in law in 1864, and a license and doctorate in 1873. As professor of jurisdiction and politology 1874–82, Mechelin had argued that the tsars were bound by the old constitutional laws from the time of the Swedish rule of Finland (before 1809), and hence affirmed that Finland

4140-461: The 1990s has focused on large-scale telecommunications infrastructure , technology development, and licensing. Nokia made significant contributions to the mobile telephony industry, assisting in the development of the GSM , 3G , and LTE standards. For a decade beginning in 1998, Nokia was the largest worldwide vendor of mobile phones and smartphones . In the later 2000s, however, Nokia suffered from

4255-670: 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

4370-496: The English equivalent), after the site of the second pulp mill. Idestam retired in 1896, making Mechelin the company's chairman; he expanded into electricity generation by 1902, which Idestam had opposed. In 1904, Suomen Gummitehdas ( Finnish Rubber Works ), a rubber business founded by Eduard Polón , established a factory near the town of Nokia and used its name. In 1922, in the now independent Finland, Nokia Ab entered into

4485-496: The English language. Senior officials, although mostly still Swedish, all learned English and all major internal documents were in English, the lingua franca of multinational corporations. After the war, the number of businesses having at least one foreign country operation rose drastically from a few thousand to 78,411 in 2007. Meanwhile, 74% of parent companies are located in economically advanced countries. Developing and former communist countries such as China, India, and Brazil are

4600-575: 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

4715-604: The Microsoft alliance and under Elop's management, Nokia also had a renewed focus on the North American market where Nokia phones were, in stark contrast to the rest of the world, almost irrelevant for many years. This strategy began in January 2012 with the introduction of the Nokia Lumia 900 smartphone in partnership with U.S. carrier AT&T . In March 2011, Nokia introduced a new corporate typeface called "Pure". On 1 August 2011, Nokia announced that it would adopt

Nokia - Misplaced Pages Continue

4830-574: 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

4945-911: The Nokia board green-lit him the ability to change the company's mobile phones strategy, including changing operating systems. Veteran Anssi Vanjoki , head of the smartphones division, left the company around this time. His final appearance was at Nokia World 2010 when the Nokia E7-00 and other Symbian^3 devices were introduced. On 11 February 2011, Nokia announced a "strategic partnership" with Microsoft , under which it would adopt Windows Phone 7 as its primary operating system on smartphones, and integrate its services and platforms with its own, including Bing as search engine, and integration of Nokia Maps data into Bing Maps . Elop stated that Nokia chose not to use Android because of an apparent inability to "differentiate" its offerings, with critics also noting that his past ties to Microsoft may have also influenced

5060-558: 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,

5175-535: The Symbian Foundation. In November 2008, Nokia announced it would end mobile phone sales in Japan because of low market share. Nokia's global mobile phone market share peaked in 2008 at 38.6 percent. The same year, Nokia announced the acquisition of Trolltech and its Qt software development. Qt was a central part of Nokia's strategy until 2011, and it was eventually sold in 2012. Nokia briefly returned to

5290-496: The Symbian developing team have claimed that the company's upper management rejected hundreds of potential innovations during the 2000s that they proposed, including entirely rewriting Symbian's code. One former Nokia employee claimed that the company was run as a " Soviet -style bureaucracy ". In July 2013, Nokia bought Siemens ' stake in the Nokia Siemens Networks joint venture for $ 2.2 billion, turning it into

5405-464: 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

5520-636: 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

5635-541: 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

5750-506: 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

5865-614: 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

SECTION 50

#1732772389987

5980-461: 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

6095-577: 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

6210-766: 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

6325-507: 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

6440-485: The acquisition products were sold under the "ITT Nokia" brand, despite SEL's sale to Compagnie Générale d'Electricité (CGE), the predecessor of Alcatel , in 1986. In 1987, Kaapelitehdas discontinued production of cables at its Helsinki factory after 44 years, effectively shutting down the sub-company. On 1 April 1988, Nokia bought the Information Systems division of Ericsson , which had originated as

6555-469: 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 ,

6670-429: The best interests of Nokia shareholders), but emotionally difficult – experts agree that Nokia would have been in a cash crisis had it not sold the division to Microsoft. Analysts believe that Ballmer pushed for the buyout because of fears that Nokia was close to adopting Android and abandoning their alliance with Microsoft. Indeed, in January 2014 the Nokia X was introduced which ran on a customised version of Android. It

6785-742: 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

6900-654: 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

7015-550: The company planned to re-enter the mobile phone business in this manner in 2016, following the expiration of its non-compete clause with Microsoft. Multinational corporation Most of the current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were

SECTION 60

#1732772389987

7130-503: The company was steadily gaining again and in Q4 2007 reached its all-time high figure of 40.4%. Its smartphone market share in that quarter was 51%. Nokia was the largest vendor at the time in all regions bar North America . Nokia launched mobile TV trials in 2005 in Finland with content provided by public broadcaster Yle . The services are based on the DVB-H standard. It could be viewed with

7245-534: The company's new Internet services, which included the N-Gage platform and the Nokia Music Store . The Ovi Store faced stiff competition from Apple 's App Store when it was introduced in 2008. In October 2008, Nokia announced the Nokia 5800 XpressMusic , the first device to ship with the new touch-centric S60 5th Edition, also known as Symbian^1, the first iteration of the platform since the creation of

7360-525: The company's stock price fell below $ 2. CEO Elop announced cost-cutting measures in June by shedding 10,000 employees by the end of the year and the closure of the Salo manufacturing plant. The Finnish prime minister also announced that the government wouldn't subsidize the company from an emergency state fund. Around this time Nokia started a new project codenamed " Meltemi ", a platform for low-end smartphones. With

7475-401: The computer market with the Booklet 3G netbook in August 2009. In late 2009 and in 2010, the music-focused Xseries and consumer-focused Cseries were introduced respectively. In April 2010 Nokia introduced its next flagship mobile device, the Nokia N8 , which would be the first to run on Symbian . However it was delayed for many months which tarnished the company's image, especially after

7590-510: 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

7705-643: 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

7820-467: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Leo Mechelin Leopold Henrik Stanislaus Mechelin (24 November 1839 – 26 January 1914), known as Leo Mechelin , was a Finnish politician, professor, liberal reformer and businessman. A leading defender of the autonomy of the Grand Duchy of Finland , and of the rights of women and minorities, Mechelin's 1905–1908 government ("Mechelin's Senate") made Finland

7935-441: The decision. Although the MeeGo "Harmattan"-based N9 was met with a highly positive reception in 2011, Nokia had already decided to end development on MeeGo and solely focus on its Microsoft partnership, although the CEO said that the N9's "innovations" will live on in the future, which eventually made their way on the Asha platform in 2013. After the announcement of the Microsoft partnership, Nokia's market share deteriorated; this

8050-479: The divestiture of its Here mapping division and the acquisition of Alcatel-Lucent , including its Bell Labs research organization. The company then also experimented with virtual reality and digital health , the latter through the purchase of Withings . The Nokia brand returned to the mobile and smartphone market in 2016 through a licensing arrangement with HMD . Nokia continues to be a major patent licensor for most large mobile phone vendors. As of 2018, Nokia

8165-443: The division making displays for personal computers. On 26 April 2001, Nokia partnered with Telefónica to supply DSL modems and routers in Spain. In 1997, Nokia established a joint venture with Brazilian electronics firm Gradient where they were granted the license to manufacture variants of Nokia mobile phones locally under the Nokia and Gradient brand names. In 1998, Nokia cofounded Symbian Ltd. , led by Psion , to create

8280-554: The division was merged into Nokia-Mobira Oy. The brand continued to be used for televisions until 1995. On 12 June 1996, Nokia announced the sale of its television business to Canada/Hong Kong-based Semi-Tech Corporation . The television manufacturing plant in Germany closed down in September 1996. The sale included a factory in Turku and the rights to use the Nokia, Finlux , Luxor , Salora , Schaub-Lorenz , and Oceanic brands until

8395-542: The end of 1999. Some of these brands were later sold to other companies. Nokia was the first to launch digital satellite receivers in the UK, announced in March 1997. In August 1997, Nokia introduced the first digital satellite receiver with Common Interface (CI) support. In 1998, Nokia became the chosen supplier to produce the world's first digital terrestrial television set-top boxes by British Digital Broadcasting (BDB), which

8510-449: The executive board regarded as akin to James Bond 's gadgets: improbably futuristic and niche devices. After all these acquisitions, Nokia's revenue base became US$ 2.7 billion. CEO Kairamo killed himself on 11 December 1988. Following Simo Vuorilehto 's appointment as CEO, a major restructuring was planned. With 11 groups within the company, Vuorilehto divested industrial units he deemed as un-strategic. Nokian Tyres ( Nokian Renkaat ),

8625-430: The failure of its previous flagship N97 and tougher competition from Apple and the rising Google . On 10 September 2010, Olli-Pekka Kallasvuo was fired as CEO and it was announced that Stephen Elop from Microsoft would take Nokia's CEO position, becoming the first non-Finnish director in Nokia's history. It was claimed that investors pressed Nokia's board to recruit an outsider to shake up management and break from

8740-481: 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

8855-434: The first GSM network with Siemens , the predecessor to Nokia Siemens Network . The world's first GSM call was made by Finnish prime minister Harri Holkeri on 1 July 1991, using Nokia equipment on the 900 MHz band network built by Nokia and operated by Radiolinja . In November 1992, the Nokia 1011 launched, making it the first commercially available GSM mobile phone. Salora Oy as a Nokia subsidiary ended in 1989 when

8970-540: The first nation in the world with the universal right to vote and to be elected. During his period in office the freedom of expression , the press , and of assembly were introduced. Mechelin was born and died in Helsinki , Finland. He also founded the Liberal Party of Finland (1880–1885), wrote its program, was one of the founders of the Union Bank of Finland 1862 (now part of Nordea Bank) and co-founded

9085-416: 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

9200-576: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by

9315-415: 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

9430-460: 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)

9545-410: The largest shareholder of Symbian Ltd. Nokia acquired the entire company in June 2008 and then formed the Symbian Foundation as its successor. In 1998 alone, the company had sales revenue of $ 20 billion, making $ 2.6 billion profit. By 2000, Nokia employed over 55,000 people and had a market share of 30% in the mobile phone market, almost twice as large as its nearest competitor, Motorola . The company

9660-474: 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 ,

9775-515: The majority of seats, and the tsar realised that he could carry on with the oppression, starting the second period of oppression (1908–1917). After Mechelin's death (in 1914), the two revolutions in Russia allowed Finland to declare its independence (1917) and Mechelin's younger co-workers were able to complete his work. Nokia , once a world-leading mobile phone corporation, was founded by Mechelin and his student days' roommate Fredrik Idestam as

9890-494: 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

10005-543: 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

10120-432: The merger of Nokia's own Maemo and Intel's Moblin . Nokia's Symbian platform that had been the leading smartphone platform in Europe and Asia for many years was quickly becoming outdated and difficult for developers after the advent of iOS and Android. To counter this, Nokia planned to make their MeeGo Linux operating system, under development, the company's flagship on smartphones. Shortly after Elop's CEO tenure began,

10235-471: The mobile phone market has had different explanations from analysts, with many split about the CEO's decision to abandon its in-house operating system and adopting Windows Phone in 2011. Many researchers have concluded that Nokia suffered from deep internal rivalries within the management. Former employees claimed that the management became so swollen by the early success that they grew complacent over time. Some from

10350-422: The positive reaction to it had created a sense of hope and optimism in the company. The company was also making gains in developing countries with its Asha series, which were selling strongly. Although Nokia's smartphone sales and market share greatly increased throughout 2013, including in the North American market, it was still not enough to avoid financial losses. Ollila stepped down as chairman on 4 May 2012 and

10465-545: The power business. This strategy proved to be very successful, and the company grew rapidly in the following years. Nokia's operating profit went from negative in 1991 to $ 1 billion in 1995 and almost $ 4 billion by 1999. Nokia's first fully portable mobile phone after the Mobira Senator was the Mobira Cityman 900 in 1987. Nokia assisted in the development of the GSM mobile standard in the 1980s and developed

10580-560: 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

10695-611: 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

10810-501: 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

10925-451: The third-largest television manufacturer of Europe (behind Philips and Thomson ). The existing brands continued to be used until the end of the television business in 1996. In 1987, Nokia acquired Schaub-Lorenz, the consumer operations of Germany's Standard Elektrik Lorenz (SEL), which included its "Schaub-Lorenz" and "Graetz" brands. It was originally part of American conglomerate International Telephone & Telegraph (ITT), and after

11040-480: The three companies – Nokia, Kaapelitehdas, and Finnish Rubber Works – merged to create a new Nokia Corporation, restructured into four major businesses: forestry, cable, rubber, and electronics. In the early 1970s, it entered the networking and radio industries. Nokia started making military equipment for Finland's defence forces ( Puolustusvoimat ), such as the Sanomalaite M/90 communicator in 1983, and

11155-409: The time, Ballmer himself was retiring as Microsoft CEO and was replaced by Satya Nadella , who opposed the Nokia mobile phones purchase, along with chairman Bill Gates . The purchased assets from Nokia were eventually written-off by Microsoft in 2015. By 2014, Nokia's global brand value according to Interbrand fell to 98th place, a sharp slide from the 5th place it was in 2009. Nokia's downfall in

11270-463: The traditional "Nokia way". Ollila had also announced that he would step down as Nokia chairman by 2012. On 11 March 2011 Nokia announced that it had paid Elop a $ 6 million signing bonus as "compensation for lost income from his prior employer", on top of his $ 1.4 million annual salary. The old Symbian OS became completely open-source in February 2010. However, in November 2010 it was announced that

11385-504: The widescreen Nokia 7710 smartphone with a special accessory enabling it to receive DVB-H signals. Nokia partnered with Arqiva and O2 to launch trials in the UK in September 2005. In 2005, Nokia developed a Linux -based operating system called Maemo , which shipped that year on the Nokia 770 Internet Tablet . On 1 June 2006, Jorma Ollila became the company's chairman and retired as CEO, replaced by Olli-Pekka Kallasvuo . In August 2007, Nokia introduced Ovi , an umbrella name for

11500-496: 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

11615-573: 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

11730-503: 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

11845-517: Was a separate, constitutional state, which the tsar could only rule by law, whereas in Russia he had absolute power. During the periods of oppression, the tsar tried to impose unconstitutional laws, which Mechelin opposed. The unrests in Russia and Finland (1905) finally compelled the tsar to comply with the November Manifesto written by Mechelin. This allowed Mechelin to form a government (1905–1908) and to transform Finland into what

11960-580: Was a surprising and somewhat odd launch coming just weeks away from the finalization of the Microsoft buyout. Others, including Ballmer's successor Satya Nadella , felt that Microsoft thought merging their software teams with Nokia's hardware engineering and designs would "accelerate" growth of Windows Phone. The sale was completed in April 2014, with Microsoft Mobile becoming the successor to Nokia's mobile devices division. Nokia also moved from its headquarters to another building complex located at Karaportti. At

12075-532: Was also awarded "best mobile imaging device" in Europe in 2007. Its successor the N82 featured a xenon flash, which helped it win the award of "best mobile imaging" device in Europe in 2008. The N93 in 2006 was known for its specialized camcorder and the twistable design that switches between clamshell and a camcorder-like position. They were also well known for the N8 with a high-resolution 12-megapixel sensor, in 2010;

12190-517: Was due to demand for Symbian dropping when consumers realized Nokia's focus and attention would be elsewhere. The company posted a large loss for the second quarter of 2011 – only their second quarterly loss in 19 years. Nokia's first Windows Phone flagship was the Lumia 800 , which arrived in November 2011. Falling sales in 2011, which were not being improved significantly with the Lumia line in 2012, led to consecutive quarters of huge losses. By mid-2012

12305-438: 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

12420-498: Was eventually launched as ONdigital . In October 1998, Nokia overtook Motorola to become the best-selling mobile phone brand and in December, manufactured its 100 millionth mobile phone. A major reason why Nokia grew against its main competitors Motorola and Ericsson was that it managed to cater to the consumer youth market and fashion-oriented consumers, most significantly with the Nokia 5110 and 3210 handsets, which featured

12535-448: 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

12650-517: Was in many respects the first liberal democracy (e.g., in New Zealand women already had the right to vote but not to be voted into office; in Australia only white people had those rights) in 1906. In 1907, the first universal elections to the one-chamber parliament ("eduskunta") were held, and 19 of its 200 first members were women. However, the constitutionals of all parties did not obtain

12765-546: 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

12880-469: Was neutral during the Cold War. In 1977, Kari Kairamo became CEO and transformed the company's businesses. By this time, Finland was becoming what has been called "Nordic Japan". Under his leadership, Nokia acquired many companies, including television maker Salora in 1984, followed by Swedish electronics and computer maker Luxor AB in 1985, and French television maker Oceanic in 1987. This made Nokia

12995-424: Was operating in 140 countries as of 1999. It was reported at the time that some people believed Nokia to be a Japanese company. Between 1996 and 2001, Nokia's turnover increased fivefold, from €6.5 billion to €31 billion. Meanwhile, a Reader's Digest survey held near end 2000 showed that Nokia was the "most trusted brand in Europe", ranking better than Sony, Canon, and Nivea. The company would then be known as

13110-432: Was replaced by Risto Siilasmaa. In September 2013, Nokia announced the sale of its mobile and devices division to Microsoft. The sale was positive for Nokia to avoid further negative financial figures, as well as for Microsoft's CEO Steve Ballmer , who wanted Microsoft to produce more hardware and turn it into a devices and services company. The Nokia chairperson, Risto Siilasmaa, described the deal as rationally correct (in

13225-513: 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

#986013