1---
 2meta: 
 3  date: false
 4  reading_time: false
 5title: "International Company"
 6date: 2023-10-05
 7description: "Definition and meaning of an International Company within the context of Economics."
 8tags: ["international company", "multinational", "global business"]
 9---
10
11## Background
12
13An international company refers to an entity that engages in business operations across multiple countries. These companies typically maintain business operations in more than one nation, aiming to offer products and services to a global market. 
14
15## Historical Context
16
17The concept of international companies emerged alongside colonial trade routes but expanded significantly during the Industrial Revolution with advances in transportation and communication. The 20th century saw another leap in the prevalence of international companies, prompted largely by globalization, technological advances, and liberalization of trade policies.
18
19## Definitions and Concepts
20
21An international company, also often termed a multinational corporation (MNC), is an organization that owns or controls production or service facilities in one or more countries other than its home country. These companies operate with a global outlook and seek to leverage economic efficiencies and market opportunities across borders.
22
23## Major Analytical Frameworks
24
25### Classical Economics
26
27- International companies can capitalize on comparative advantage, specializing in production where they are most efficient, and maximize profits through inter-country trade.
28
29### Neoclassical Economics
30
31- Focuses on market efficiencies and economies of scale offered by international companies, explaining how they can reduce costs and promote efficient resource allocation across nations.
32
33### Keynesian Economics
34
35- Examining the role of international companies in different economic climates, these firms can have stabilizing or destabilizing effects depending on governmental policies and the global economic environment.
36
37### Marxian Economics
38
39- Critiques the concentration of capital in international companies and the inequalities arising from global labor exploitation and capital mobility.
40
41### Institutional Economics
42
43- Highlights the role of legal and formal institutions that regulate how international companies operate across different countries.
44
45### Behavioral Economics
46
47- Studies the behaviors and decision-making processes within international companies, particularly in how they adapt to differing cultural norms and economic environments.
48
49### Post-Keynesian Economics
50
51- Focuses on the impacts of international companies on income distribution, employment, and growth within and across different economies.
52
53### Austrian Economics
54
55- Views international companies as facilitators of free-market efficiencies, expanding opportunities and fostering economic development.
56
57### Development Economics
58
59- Analyzes how international companies affect developing economies, both positively by introducing technologies and negatively via potential exploitation.
60
61### Monetarism
62
63- Examines the role of international companies in the context of global monetary flows, currency exchanges, and their contribution to the international monetary system.
64
65## Comparative Analysis
66
67International companies can be compared across various aspects such as size, market influence, operational frameworks, and their impacts on both home and host country economies. Their strategies might differ significantly depending on regional regulations, market dynamics, and socio-political environments.
68
69## Case Studies
70
71Case studies of international companies reveal both successes and challenges in globalization:
721. **Apple Inc.** leveraging global supply chains and markets.
732. **Toyota Motor Corporation's** manufacturing and assembling operations across continents.
743. **McDonald's Corporation** adapting its menu and business strategies to local tastes and regulations worldwide.
75
76## Suggested Books for Further Studies
77
78- "Global Business Management: A Cross-Cultural Perspective" by Lee "Calvin" Harrison.
79- "The Globalization Paradox: Democracy and the Future of the World Economy" by Dani Rodrik.
80- "Multinational Enterprises and the Global Economy" by John H. Dunning and Sarianna M. Lundan.
81
82## Related Terms with Definitions
83
84- **Globalization:** The process by which businesses, technologies, or philosophies spread over the world.
85- **Multinational Corporation (MNC):** A business organization that operates in multiple countries; synonymous with international company.
86- **Foreign Direct Investment (FDI):** Investment made by a company or individual in one country into business interests located in another country.