What Is the Average Life Span of a Multinational Corporation?
A multinational corporation is a business enterprise that operates facilities in at least one other country other than its home nation. Some corporations of this type operate with a domestic headquarters but with manufacturing and sales offices located in other nations. The average life span of a multinational corporation is 40 to 50 years, with many companies failing or being absorbed in takeovers and mergers within the first 15 to 20 years.
More facts about multinational corporations:
According to information found in Fortune magazine’s annual Fortune 500 listing, one-third of the companies identified in the 1970 listing were no longer in existence by the time the 1985 listing was compiled.
Multinational corporations are found in just about every industry. Some well-known companies that operate with facilities in at least one international location include Apple, Cadbury Schweppes, Capital One, Gerdau Ameristeel and Hewlett Packard.
Although many multinational corporations disappear within 50 years, there are exceptions. The Stora company began as a copper mining operation in Sweden in the 14th century and is now a major paper, pulp and chemical operation. In like manner, the Sumitomo Group dates to 1590 and is still in business, with divisions functioning in a variety of industries.
Discussion Comments
Why? Because of bankruptcy or mergers and acquisitions?
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