Corporations In Our Community

Corporations can either be private or public Private corporation A few people control all shares Stocks are not available for sale on a stock exchange Public corporation Raises money by selling stocks on the stock exchange. Purchasers become owners of the business

Many types of corporations: Crown Corporation Non-profit Corporation Multinational Companies

Crown Corporation Operated by provincial or federal government (Via Rail, Canada Post, CBC) The Queen, or “Crown”, is the sole shareholder.

Non-Profit Corporations Provide a service and are not concerned with making a profit. ( ex: church, hospital, charity) Many non-profit organizations are affiliated with international organizations. Nonprofit organizations are also referred to as nongovernmental organizations or NGOs. ( ex: Invisible Children)

Multinational Corporations

Multinational Corporation or Company (MNC) Organization that conducts business in several countries. MNCs usually consist of a parent company in a home country and divisions or separate companies in one or more host countries. ( ex: Exxon)

Multinational Corporation or Company (MNC) MNCs get involved in global activities to take advantage of business opportunities in other geographic areas. The potential for MNCs to sell goods or services in other countries is the result of a competitive advantage which may be the result of technology, lower costs, location, or natural resources.

Characteristics of MNC’s 1. Worldwide Market View - they view the entire world as their potential market 2. Standardized Products - they look for similarities among markets to offer standardized products whenever possible. 3. Culturally-Sensitive Hiring - they have consistent hiring policies throughout the world; they recruit managers internationally rather than just from the country of operation. 4. International and Local Perspective - these companies distribute, produce, price, and promote with both an international outlook and a local perspective.

Concerns About MNC’s As a foreign company becomes a major business, the MNCs economic power can make a host country dependent. - Workers will depend on the MNC for jobs. - Consumers will depend on the company for needed goods and services. - The MNC could become a country’s entire economic entity.

Concerns About MNC’s If #1 occurs, then the MNC could control or influence the country’s politics. The company may require certain tax laws or regulations that only benefit the powerful MNC.