ABSTRACT
OVER the past forty years, most of the world's large manufacturing firms—both in the United States and elsewhere—have been transformed from strictly national or domestic to multinational or international enterprises. International business remains the domain of a relatively small number of large multinational corporations (MNCs) with an ever-growing market share. A common definition of a multinational company is one with investment and sales in two or more countries, or one with business activities in two or more countries. MNCs are positioned to take advantage of the complex marketplace, since they are relatively unconstrained in their global activities. International diversification reduces fluctuations in corporate earnings, and enhances their shareholders' value.
