Globalization is the main theme of our times, every company is inevitably following this trend, in order to seek new markets, improve productive efficiency, promote innovation and access raw materials, large enterprises with relatively strong power have begun their own expansion. Under this background, it is necessary for us to understand what Multinational Corporation are, the production and driving force of the era of globalization. The Multinational Corporation, also called multi-national Enterprise, International Firm, Supranational Enterprise and Cosmo-corporation, is unlike traditional corporations, is a large corporation that can run in many countries at the same time rather than traditionally operating in only one country.
There are three basic factors to estimate whether a company is multinational, the first factor is the company should do business in two or over two countries, second is all of multinational corporations have a central management system to decide what the common strategy is, furthermore, this strategy must reflect the global target, last is each controlled company shares resources, information and responsibility for the whole transnational group. The development of MNEs can consider as four steps(Edwards et al 2012). The earliest historical origins of MNE began in the 16th century and preceded for the next several years, during this period, firms such as the British East India Trading Company were formed to promote the trading activities or territorial acquisitions of their host countries in the Middle East, Africa, and the Americas.
The transnational corporation as it is known today, however, did not really appear until the 19th century, with the advent of industrial capitalism and its consequences: the development of the factory system; larger, more capital intensive manufacturing processes; better storage techniques; and faster means of transportation. From the 19th to early 20th century that is before 1945 increasing drove expansion was almost exclusively from the United States and a handful of Western European nations. Sixty percent of these corporations’ investments went to Latin American, Asia, Africa, and the Middle East; the time scale from 1945 to present, the age of spreading worldwide is the stage that this project mainly researched at this time (Greer. J & Singh. K, 2000）multinational corporations expanded on a global scale, it means that not only developed countries, developing countries also pushed the level of enterprise to an international level, with high economics growth and higher participation in the world trade.