A corporation needs capital in order to start up, operate, and expands its business. The process of acquiring this capital is known as financing. A corporation uses two basic types of financing and debt financing. Equity financing refers to funds that are invested by owners of the corporation. Debt financing, on the other hand, refers to funds that borrowed from sources outside the corporation.
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Hendri yuda
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MULTINATIONAL CORPORATIONS
A company often becomes involved in international trade by exchanging goods or services with another country-importing raw materials it may need for production or exporting finished products to a foreign market. Establishing these trade relationships is the first step in the development of a multinational business. At this stage, however the corporation’s emphasis is still on the domestic market. As trade expands, the corporation’s dealing with companies or people outside the “home country” of that corporation increase.
The corporation then begins to view the whole world as a base for production and marketing operations. The next step in the development of a multinational business is focusing on the world market. The company may establish a foreign assembly plant, engage in contract manufacturing, or build a foreign manufacturing company or subsidiary. Therefore, a multinational corporation is a company that is primarily based in one country and has production and marketing activities in foreign countries.
