Case Study about Transnational Firms and their Corporate Labor Policy
Philips and ING in the Netherlands and the United States, 1980–2010
Economic activity across national borders increased dramatically between 1980s and the beginning of the twenty-first century. Financial, product, and service markets trans-nationalized, and companies expanded their operations abroad through acquisitions, mergers, and autonomous growth. They increased their sales and profits and became better equipped to compete in the transnational marketplace.
During this period, foreign direct investment increased twelvefold, while the number of firms operating across national borders increased eight fold. Nowadays, many companies no longer realize their revenues and profits in a single country; instead, the sources of their revenues and profits have become dispersed across the globe. Also, these transnational corporations have significant numbers of employees in multiple countries; their work force has become dispersed as well. Finally, a significant number of these firms have experienced the internationalization of top management and shareholders.
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