Globalization has brought about a paradigm shift in recent decades, but how important are multinational companies in this process?
For a company to be considered multinational, it must meet the following requirements:
This type of company plays a key role in the development of the global economy.
Distinguishing a multinational from an international company can be challenging in some cases, so let’s look at the main differences:
If we go back to the first multinational company in the world, we must travel 400 years into the past — it was the Dutch East India Company (VOC), founded in 1602. It was the forerunner of this business model and represented a turning point in the way international trade operated.
This multinational had a presence in Asia, Africa, and Europe, operating from different locations and exerting control in various countries. One of the distinctive aspects that made this company stand out was its financial innovation, as it created the world’s first stock market, becoming the first company to allow investors to buy shares. In addition, it had its own army, which gave it political and economic power similar to that of a government, allowing it to manage its business more effectively.
The best way to understand a concept is through examples, so let’s look at some well-known multinationals to help illustrate this.
In Spain we find Acciona, a global sustainable development company focused on renewable energy and sustainable infrastructure. It operates in more than 60 countries across 5 continents and has its main headquarters in Madrid.
Acciona has based its strategy as a company on meeting the United Nations Sustainable Development Goals (SDGs).
Adidas is one of the world’s giants in sports goods, as the German company operates in over 160 countries worldwide. Founded in 1949 by Adolf Dassler, its headquarters are in Bavaria.
It is a clear example of a strategy adapted to each market and has positioned itself in the consumer’s mind as one of the top-of-mind sports brands.
In Argentina, we find the most widely used e-commerce and digital payments platform in Latin America: Mercado Libre. It was founded in 1999 in Buenos Aires and currently operates in 18 countries.
This multinational developed its own payment platform, Mercado Pago, to ensure transactions are carried out securely.
There are several global giants originating from the United States, among them Amazon. Founded in 1994 as an online bookstore, it has become a technological giant — far more than just an online store.
It is considered one of the most influential companies of the 21st century.
The company Toyota stands out among Asian multinationals as one of the largest automobile manufacturers. Likewise, it is a pioneer in the development of hybrid vehicles and currently stands as the global leader in manufacturing this type of automobile.
The company was founded in Japan in 1937, where its headquarters are still located today.
In recent years, multinationals have grown significantly in various aspects, such as:
Different trends will shape the future of multinationals, which currently contribute positively to their own growth. We can see how digital transformation has been particularly effective in this context, encompassing everything from AI to automation and various process optimizations.
Likewise, improved reputation through responsible practices, globalization, the emergence of new business models, and the search for professionals with a global mindset have been key factors driving the evolution and growth of multinational companies in recent decades.
In short, after taking a look at the history of multinational companies, we can conclude that they are a pillar of the global economy that live in constant adaptation due to the continuous evolution of society, with new trends setting the pace for change and development.
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