Multinational corporations

Business enterprises usually get their start from the industry and inventiveness of one man, and his drive and energy propels his business to a measure of success. With each success comes a powerful resource: capital. A businessman is usually an intelligent man with a special kind of hunger: a desire to accumulate surplus. This might be the reason why most of them are called Fat Cats. When he accumulates enough surplus he then embarks on a program of expansion and acquisition. The first thing that he acquires is land which he knows to be scarce and he doesn't want to be paying rent. In so doing he takes possession of three of the four fundamental factors of production namely:

1. Land
   
2. Capital
   
3. Enterprise

The fourth factor of production is Labor and it is something that he can buy but not control completely and is often a constant source of problem and irritation to him, the businessman. Labor is something that he cannot really take possession of since it consists of individual people like himself. So he dreams of minimizing his need for labor by inventing automated systems and robot arms and computers and other technological gadgets and gizmos. Even with all the technology at his command he still needs people to operate the machines and equipment.

Having Land, Capital added to his Enterprise, he becomes all-powerful. He begins to grow more and more and soon he joins up with other Enterprisers to form a bigger and more efficient unit of production. The corporation was invented to ensure the growth of business according it with unprecedented power and leeway in conducting its business. Laws are enacted to grant corporations tax breaks and myriad incentives to keep it growing more and more. Profits have to grow or the very existence of the corporation is threatened which is a threat so powerful that cities and communities and even countries bow down to the whims and caprices of corporations. Every community woos corporations to set up plants and offices in their areas because it means jobs and prosperity for all.

Raw materials in abundant quanities are often widely dispersed geographically hence the need to establish different corporate entities in various countries.This technique allows the corporation to minimize expenses while achieving tax incentives. This is a natural necessity in the evolution of the corporation into a global phenomenon.