ABSTRACT
This chapter explains multinational enterprises (MNEs), their purpose, importance, and future. MNEs have many of the same activities and functions that ordinary non-multinational enterprise companies have. MNEs are entities that have operations in a home country, where the headquarters is based, and one or more host countries. MNEs may help the economy of the host country. They may employ locals for positions in the firm or in production plants if they also manufacture the products in the same country. Managers of MNEs must be very knowledgeable in many areas. Some factors that affect MNEs are exchange rate fluctuations and the convertibility of the currency. In addition, by leaving the home country, MNEs are taking away the much-needed capital inflow that they are creating. As MNEs continue to spread across the world, they have begun to influence developing countries largely. MNEs control the power of technology, which has adversely affected many cultures and societies.
