Multinational Corporations-Ownership and Investment

Multinational corporations have become a very large factor in the economies of most countries. Since WWII manufacturing has displaced selling as the principal activity of MNCs outside their home country. The ownership of parent MNCs is typically centered in their country of origin. Additional capital may be added from earnings, or from borrowings, or equity financing in host or home countries or third countries. The expected shortage and cost of capital will probably be the largest problem MNCs face in the next decade, but their size and financial strength should assure their continued success.