ABSTRACT
In 1976 the Organisation for Economic Development and Co-operation published the document declaration and decisions on international investment and multinational enterprises. In due course, European and Japanese multinational corporation act began to follow the US strategy and consolidate 'national champions'. The foreign direct investment that MNCs bring consists of money, know-how and management expertise; they build factories and offices; and they provide jobs and training. On 1 March 1994, Lucio Noto, president and chief operating officer of Mobil Corporation, replaced Allen Murray as chairman and chief executive. The merger was done through a 'pooling of interests', where Exxon shareholders would own 70% and Mobil shareholders 30% of the combined corporation. Best practice suggests a group of no more than 20 people—including non-executive directors and people independent of the corporation—with varied professional backgrounds, divided into operating committees and led by someone other than the chief executive officer.
