The political, economic and social role of American multinational companies in the world from the origins

Abstract

The goal of this dissertation is to explore the role of multinational companies linked to the American foreign politics in relation to the international economy. “A multinational corporation is a form of capitalist enterprise in which the financial structure, managerial control, and integration of productive activity span national boundaries and are oriented to international (or global) markets” . A multinational corporation is a company that operates in more than one country. Generally, multinational corporations consist of separate companies (called subsidiaries) in different countries, all of which answer to a central office located in the firm’s home country. Most multinational companies today are headquartered in the United States, Japan, or Western Europe. Examples include General Motors, Coca-Cola, Microsoft, Exxon Mobil, Sony, Honda, Royal Dutch Shell, British Petroleum, UPS. This dissertation explores the rich history of American multinational companies, tracing their growth and impact from the end of the War of 1812 to the turn of the 20th century. The Civil War marked a pivotal point, destroying property claims on enslaved people while creating infrastructure for investment and immigration, leading to the rise of large corporate enterprises. By the end of the 19th century, the U.S. had transformed from a peripheral Atlantic power into a global industrial powerhouse. Leveraging important works such as "The Multinational Mission: Balancing Local Demands and Global Vision" by Christopher A. Bartlett and Sumantra Ghoshal, and Mira Wilkins's "The History of Foreign Investment in the United States," it delves into the transformational role these corporations have played in shaping not only America's economic fabric but also the global business landscape. The study further elucidates the production organizational model and differences with other European models. The dissertation will include the strategies employed by these corporations, their influence on international trade and politics and their responses to the ever-evolving global business environment. The history of multinational model of productive organizations will be covered with particular focus on extractive industries of the 70s. Case studies of iconic American multinational companies such as Ford, Coca-Cola and Apple will provide a comprehensive understanding of their historical trajectory and influence. Several are the benefits that multinational corporations bring to local communities in which they operate such as creation of jobs, foreign direct investments, improvement of living conditions, promotion of international trade. While multinational corporations can corporations can bring numerous benefits, which can vary depending on the context and specific circumstances, it is also crucial to critically assess their overall impacts on society and the economy. The dissertation also incorporates critiques of American multinationals, referencing works like "When Corporations Rule the World" by David Korten, to present a balanced perspective. It concludes with implications for future research on the evolving role of American multinationals in a rapidly changing global economic order. Last chapter of the dissertation will focus on the case study of the American multinational company United Parcel Service (UPS) from the origins until today. In 1907, two teenage entrepreneurs created what would become the world's largest package delivery service. Starting in a Seattle basement with a $100 loan, Claude Ryan and Jim Casey opened the American Messenger Company. Nowadays its dark brown trucks have become a familiar sight on the streets of many cities globally. The study will go through the historical milestone phases of the organization.