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114-849: Matías Cousiño was born in Santiago, Chile as the son of José Agustín Cousiño Zapata and Josefa de Jorquera y Alfaro, a family of Galician and Spanish descent. During the War for Independence , his family lost their wealth, and Matías was forced to work at an early age. He worked in the post office of Valparaíso , where his father was the boss. He went on to succeed his father in 1828. During this time, he married Loreto Squella y Lopetegui, who died giving birth to his first son, Luis Cousiño Squella. Matías Cousiño studied in Santiago without excelling in his academics, but doing so in business. In 1841, he married Luz Gallo Zavala, who had 2 children. Thanks to his economic power, he

228-596: A multi-national enterprise ( MNE ), trans-national enterprise ( TNE ), trans-national corporation ( TNC ), international corporation , or state less corporation , ) is a corporate organization that owns and controls the production of goods or services in at least one country other than its home country. Control is considered an important aspect of an MNC to distinguish it from international portfolio investment organizations , such as some international mutual funds that invest in corporations abroad solely to diversify financial risks. Black's Law Dictionary suggests that

342-483: A 14-metre (46 ft) statue of the Virgin Mary . Today, the statue is visible from various points in the city. However, the shrine was not completed until several decades later. The 1910 Chile Centennial celebrations marked the beginning of several urban development projects. The railway network was expanded, connecting the city and its growing suburbs with a new ring and route to Cajón del Maipo . A new railway station

456-766: A basis in a national ethos , being ultimate without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards . In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefits capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality , unemployment , and wage stagnation . Raymond Vernon presents

570-515: A company or group should be considered a multi-national corporation "if it derives 25% or more of its revenue from out-of-home-country operations". Most of the current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were

684-498: A corporation invests in a country in which it is not domiciled, it is called foreign direct investment (FDI). Countries may place restrictions on direct investment; for example, China has historically required partnerships with local firms or special approval for certain types of investments by foreigners, although some of these restrictions were eased in 2019. Similarly, the United States Committee on Foreign Investment in

798-429: A free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services. To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to

912-486: A heated discussion about the actual implementation of mandatory earthquake standards in the city's modern architecture. Despite urban integration efforts, socioeconomic inequality and geosocial fragmentation remain two of the most important problems, both in the city and in the country. These problems have been considered one of the factors that led to the " Estallido Social " , a series of massive protests and severe riots carried out between 2019 and 2020. The protests led to

1026-473: A layer of smog blanketed the city. In response, the authorities implemented legislative measures to reduce industrial pollution and placed restrictions on vehicle use. To address the problem of transportation, the metro system underwent significant expansion, with lines being extended and three new lines added between 1997 and 2006 in the southeastern sector. In 2011, a new extension was inaugurated in Maipú, bringing

1140-487: A million troops to help, and by February 1991, Iraqi forces were expelled from Kuwait. Due to the oil boycott from Kuwait and Iran, oil prices rose and quickly recovered. Saudi Arabia once again led OPEC, and thanks to assistance in defending Kuwait, new relations emerged between the USA and OPEC. Operation "Desert Storm" brought mutual dependence among the main oil producers. OPEC continued to influence global oil prices but recognized

1254-678: A north–south direction and 35 km (22 mi) from east to west. The Mapocho River flows through the city. The city is flanked by the main chain of the Andes to the east and the Chilean Coastal Range to the west. On the north, it is bordered by the Cordón de Chacabuco , a mountain range of the Andes. At the southern border lies the Angostura de Paine , an elongated spur of the Andes that almost reaches

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1368-567: A powerful earthquake struck the city on 3 March 1985, causing minimal casualties but leaving many homeless and destroying numerous historic buildings. With the onset of the transition to democracy in 1990, the city of Santiago surpassed four million inhabitants, with the majority residing in the south, particularly in La Florida, which was the most populous area, followed by Puente Alto and Maipú. The real estate development in these municipalities, as well as in others such as Quilicura and Peñalolén,

1482-518: A serious civil confrontation, which led to thousands of arrests and accusations of human rights violations. Meanwhile, the demonstrations registered serious episodes of violence against public and private infrastructure, mainly in the surroundings of Plaza Baquedano , with the Santiago Metro being one of the most affected by these episodes: more than half of its stations registered damage (several being partially set on fire) and only eleven months later

1596-720: Is headed by a provincial delegate appointed by the President of the Republic, and it is also part of the Santiago Metropolitan Region, governed by a popularly elected governor . When the term Santiago is used without further clarification, it typically refers to Gran Santiago (Greater Santiago), the metropolitan area characterized by continuous urban development. This area includes the commune of Santiago and over 40 other communes, encompassing much of Santiago Province and parts of neighboring provinces . The definition of

1710-410: Is often handled through international arbitration . The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in

1824-469: Is present at over 1,000 meters of altitude. The natural vegetation of Santiago is made up of a thorny woodland of Vachellia caven (also known as Acacia caven and espinillo) and Prosopis chilensis in the west and an association of Vachellia caven and Baccharis paniculata in the east around the Andean foothills. Multinational corporation A multi-national corporation ( MNC ; also called

1938-534: Is the Tupungato mountain at 6,570 m (21,555 ft). Other mountains include Tupungatito , San José , and Maipo . Cerro El Plomo is the highest mountain visible from Santiago's urban area. During recent decades, urban growth has outgrown the boundaries of the city, expanding to the east up the slopes of the Andean Precordillera . In areas such as La Dehesa, Lo Curro, and El Arrayan, urban development

2052-521: Is the capital and largest city of Chile and one of the largest cities in the Americas . It is located in the country's central valley and is the center of the Santiago Metropolitan Region , which has a population of seven million, representing 40% of Chile's total population. Most of the city is situated between 500–650 m (1,640–2,133 ft) above sea level . Founded in 1541 by

2166-865: Is usually a large corporation incorporated in one country that produces or sells goods or services in various countries. Two common characteristics shared by MNCs are their large size and centrally controlled worldwide activities. MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial experience globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries and gain access to special R&D capabilities residing in advanced foreign countries. The problem of moral and legal constraints upon

2280-468: The Apostle James , the patron saint of Spain. The city was established near Huelén, which Valdivia renamed Santa Lucía. He assigned the city's layout to master builder Pedro de Gamboa , who designed a grid plan . At its center, Gamboa placed a Plaza Mayor , which became the town's central hub. Surrounding the plaza, plots were designated for the cathedral , the jail, and the governor's house . The city

2394-519: The Arauco War . Santiago was left vulnerable, and a coalition of Mapuche and Picunche tribes led by chief Michimalonco destroyed the city on 11 September 1541, despite the efforts of a Spanish garrison of 55 soldiers defending the fort. The defense was led by Spanish conquistadora Inés de Suárez . When she realized they were being overpowered, she ordered the execution of all indigenous prisoners, displaying their heads on pikes and throwing some towards

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2508-549: The Army of the Andes emerged victorious at the Battle of Chacabuco and restored the patriot government in Santiago. However, independence was still uncertain. The Spanish army achieved further victories in 1818 and advanced toward Santiago, but their progress was finally halted at the Battle of Maipú on April 5, 1818, on the Maipo River plains. With the end of the war, Bernardo O'Higgins

2622-930: The British East India Company founded in 1600 and the Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include the Swedish Africa Company founded in 1649 and the Hudson's Bay Company founded in 1670. These early corporations engaged in international trade and exploration and set up trading posts. The Dutch government took over

2736-578: The Edificio Diego Portales was constructed in 1972. In 1967, the new Pudahuel International Airport was opened, and after years of discussion, construction of the Santiago Metro began in 1969. The first phase of the Metro, which ran beneath the western section of Alameda, was opened in 1975 and soon became one of the most prestigious buildings in the city. Over the following years, the Metro continued to expand, with two perpendicular lines in place by

2850-491: The National Stadium emerged in 1938. In the following decades, Santiago continued to grow at an unprecedented rate. In 1940, the city had a population of 952,075 residents, which increased to 1,350,409 by 1952, and reached 1,907,378 in the 1960 census. This growth was reflected in the urbanization of rural areas on the outskirts of the city, where middle and lower-class families with stable housing were established. In 1930,

2964-620: The Picunche people (as they were known to Chileans) or the Promaucae (as referred to by the Incas) were under Inca rule from the late 15th century to the early 16th century. The Incas established a settlement of mitimas in the valley, located in the center of present-day Santiago, with fortifications such as Huaca de Chena and the El Plomo hill sanctuary. According to Chilean historian Armando de Ramón ,

3078-407: The Picunche people who lived in the area. Valdivia later called a meeting with the local chiefs, during which he explained his plan to establish a city on behalf of Charles IV of Spain . The city would serve as the capital of his governorship of Nueva Extremadura . On 12 February 1541, Valdivia officially founded the city of Santiago del Nuevo Extremo ( Santiago of New Extremadura ) in honor of

3192-856: The Teatro Municipal opera house and the Club Hípico de Santiago . In addition, the 1875 International Exposition was held in the Quinta Normal grounds. Santiago emerged as the central hub of the national railway system. On 14 September 1857, the first railway arrived in the city and terminated at the Santiago Estación Central railway station , which was under construction at the time and officially opened in 1884. During this period, rail lines connected Santiago to Valparaíso and regions in northern and southern Chile. The streets of Santiago were also paved, and by 1875, there were 1,107 railway cars in

3306-409: The church of San Francisco in 1572. Both of these structures were primarily made of adobe and stone. In addition to the construction of significant buildings, the city began to thrive as the surrounding areas welcomed tens of thousands of livestock. During the 16th and 17th centuries, the growth of the city was hindered by a series of disasters including an earthquake , a smallpox epidemic in 1575,

3420-418: The ministries and other public services, as well as the start of the construction of medium-rise buildings. Meanwhile, the traditional residents of the center began to migrate to more rural areas like Providencia and Ñuñoa, which attracted the oligarchy and European immigrant professionals, and San Miguel for middle-class families. Additionally, in the periphery, villas were built by various organizations of

3534-602: The 1840s, he expanded into the milling industry in Concepción . He organized a milling association that exported flour and wheat to the Pacific coast. His mining career began as a butler in the mines of Ramón Ignacio de Goyenechea, an investor in the silver mine of Descubridora de Chañarcillo in the Atacama Desert . He continued ascending in position until his marriage in 1841, widow of Ignacio de Goyenechea, allowed him to combine

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3648-489: The 1980s when the government embraced a neoliberal economic model. In 1979, the master plan was revised, expanding the urban area to over 62,000 hectares for real estate development. This led to urban sprawl , particularly in La Florida , causing the city to reach 40,619 hectares in size in the early 1990s. According to the 1992 census, Santiago became the country's most populous municipality, with 328,881 residents. Tragically,

3762-650: The 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from the Spanish government. Rio Tinto, now based in London and Melbourne , Australia, has made many acquisitions and expanded globally to mine aluminum , iron ore , copper , uranium , and diamonds . European mines in South Africa began opening in the late 19th century, producing gold and other minerals for

3876-528: The Congress mostly meets in nearby Valparaíso . In Chile, several entities share the name Santiago , which can often lead to confusion. The commune of Santiago , also referred to as Santiago Centro , is an administrative division encompassing the area occupied by the city during colonial times. It is governed by the Municipality of Santiago and led by a mayor. This commune is part of Santiago Province , which

3990-546: The English language. Senior officials, although mostly still Swedish, all learned English and all major internal documents were in English, the lingua franca of multinational corporations. After the war, the number of businesses having at least one foreign country operation rose drastically from a few thousand to 78,411 in 2007. Meanwhile, 74% of parent companies are located in economically advanced countries. Developing and former communist countries such as China, India, and Brazil are

4104-557: The International Energy Agency (IEA), enabling states to coordinate policy, gather data, and monitor global oil reserves. In the 1970s, OPEC gradually nationalized the Seven Sisters. The Kingdom of Saudi Arabia, as the only largest world oil producer, could leverage this. However, Saudi Arabia opted for the correct approach and maintained consistent oil prices throughout the 1970s. In 1979, the "second oil shock" came from

4218-578: The Mapocho River floods in 1590, 1608, and 1618, and a devastating earthquake on 13 May 1647 which resulted in the death of over 600 people and affected over 5,000 others. Despite these setbacks, the capital of the Captaincy General of Chile continued to grow, with all the power of the country being centered on the Plaza de Armas in Santiago. In 1767, the corregidor Luis Manuel de Zañartu launched one of

4332-561: The Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States. Corporations can legally engage in tax avoidance through their choice of jurisdiction but must be careful to avoid illegal tax evasion . Corporations that are broadly active across

4446-674: The Normal School of Preceptors, the School of Arts and Crafts, and the Quinta Normal . The latter comprised the Museum of Fine Arts (now the Museum of Science and Technology) and the National Museum of Natural History . These institutions were established primarily for educational purposes, but also served as examples of public planning during that period. In 1851, the first telegraph system connecting

4560-545: The OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example: Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963,

4674-472: The Santiago basin around the 10th millennium BC. These groups were primarily nomadic hunter-gatherers, traveling from the coast to the interior to hunt guanacos during the Andean snowmelt. By around 800 AD, the first permanent settlers established agricultural communities along the Mapocho River , where they cultivated crops such as maize , potatoes , and beans , and domesticated camelids. The villages of

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4788-543: The Spanish conquistador Pedro de Valdivia , Santiago has served as the capital city of Chile since colonial times. The city features a downtown core characterized by 19th-century neoclassical architecture and winding side streets with a mix of art deco, neo-gothic, and other styles. Santiago's cityscape is defined by several stand-alone hills and the fast-flowing Mapocho River , which is lined by parks such as Parque Bicentenario , Parque Forestal , and Parque de la Familia . The Andes Mountains are visible from most parts of

4902-458: The Third World colonies. That changed dramatically after 1945 as investors turned to industrialized countries and invested in manufacturing (especially high-tech electronics, chemicals, drugs, and vehicles) as well as trade. Sweden's leading manufacturing concern was SKF , a leading maker of bearings for machinery. In order to expand its international business, it decided in 1966 it needed to use

5016-636: The U.S. applies its corporate taxation "extraterritorially", which has motivated tax inversions to change the home state. By 2019, most OECD nations, with the notable exception of the U.S., had moved to territorial tax in which only revenue inside the border was taxed; however, these nations typically scrutinize foreign income with controlled foreign corporation (CFC) rules to avoid base erosion and profit shifting . In practice, even under an extraterritorial system, taxes may be deferred until remittance, with possible repatriation tax holidays , and subject to foreign tax credits . Countries generally cannot tax

5130-527: The United States sanctions against Iran ; European companies faced with the possibility of losing access to the U.S. market by trading with Iran. International investment agreements also facilitate direct investment between two countries, such as the North American Free Trade Agreement and most favored nation status. Raymond Vernon reported in 1977 that of the largest multinationals focused on manufacturing, 250 were headquartered in

5244-506: The United States scrutinizes foreign investments. In addition, corporations may be prohibited from various business transactions by international sanctions or domestic laws. For example, Chinese domestic corporations or citizens have limitations on their ability to make foreign investments outside China, in part to reduce capital outflow . Countries can impose extraterritorial sanctions on foreign corporations even for doing business with other foreign corporations, which occurred in 2019 with

5358-609: The United States as the largest consumer and guarantor of the existing oil security order. Since the Iraq War, OPEC has had only a minor influence on oil prices, but it has expanded to 11 members, accounting for about 40 percent of total global oil production, although this is a decline from nearly 50 percent in 1974. Oil has practically become a common commodity, leading to much more volatile prices. Most OPEC members are wealthy, and most remain dependent on oil revenues, which has serious consequences, such as when OPEC members were pressured by

5472-461: The United States from 2010. The USA became the leading oil producer, creating tension with OPEC. In 2014, Saudi Arabia increased production to push new American producers out of the market, leading to lower prices. OPEC then reduced production in 2016 to raise prices, further worsening relations with the United States. By 2012, only 7% of the world's known oil reserves were in countries that allowed private international companies free rein; 65% were in

5586-610: The United States, 115 in Western Europe, 70 in Japan, and 20 in the rest of the world. The multinationals in banking numbered 20 headquartered in the United States, 13 in Europe, nine in Japan and three in Canada. Today multinationals can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile ; The Economist suggests that

5700-738: The VOC in 1799, and during the 19th century, other governments increasingly took over private companies, most notably in British India. During the process of decolonization , the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company , dissolving in 1972. Mining of gold, silver, copper, and oil was a major activity early on and remains so today. International mining companies became prominent in Britain in

5814-498: The West to the post-colonial South and invest either in foreign expenditures or ostentatious economic development projects. After 1974, most of the money from OPEC members ceased as payments for goods and services or investments in Western industry. In February 1974, the first Washington Energy Conference was convened. The most significant contribution of this conference was the establishment of

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5928-561: The area served as a base for failed Inca expeditions to the south and was a junction along the Inca Trail . Pedro de Valdivia , a conquistador from Extremadura sent by Francisco Pizarro from Peru , arrived in the Mapocho valley on 13 December 1540, after a long journey from Cusco . Valdivia and his party camped by the river on the slopes of the Tupahue hill and gradually began interacting with

6042-466: The aristocracy lost much of its power, and the middle class, composed of merchants, bureaucrats, and professionals, acquired the role of setting national policy. In this context, Santiago began to develop a substantial middle- and lower-class population, while the upper classes sought refuge in the districts of the capital. Thus, the old moneyed class, who previously frequented Cousiño and Alameda Park, lost their hegemony over popular entertainment venues, and

6156-583: The attackers. In response to this brutal act, the indigenous forces dispersed in fear. The city was gradually rebuilt, with the newly established city of Concepción gaining political prominence as the Royal Audiencia of Chile was established there in 1565. However, the ongoing threat of the Arauco War and frequent earthquakes delayed the establishment of the Royal Court in Santiago until 1607, which solidified

6270-624: The beginning of Chile’s path to independence . The city, which became the capital of the newly formed nation, faced various challenges, particularly from military actions in the vicinity. Although institutions like the Instituto Nacional and the National Library were established during the Patria Vieja , they were shut down after the patriots’ defeat at the Battle of Rancagua in 1814. The royal government continued until 1817, when

6384-462: The behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that has emerged during the late twentieth century. Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week ,

6498-474: The capital to the Port of Valparaíso was inaugurated. During the "Liberal Republic" and the administration of Mayor Benjamín Vicuña Mackenna , a new phase in the urban development of the capital was initiated. One of the main projects during this period was the remodeling of Cerro Santa Lucía , which had fallen into disrepair despite its central location. In his effort to transform Santiago, Vicuña Mackenna initiated

6612-589: The cathedral's façade, the Palacio de La Moneda , the San Carlos Canal , and the completion of the embankments during the government of Ambrosio O'Higgins . These works were officially opened in 1798. The O'Higgins government also opened the road to Valparaíso in 1791, connecting the capital with the country's main port. On September 18, 1810, the First Government Junta was proclaimed in Santiago, marking

6726-482: The center, lies at 570 m (1,870 ft). Estadio San Carlos de Apoquindo , at the eastern edge of the city, has an elevation of 960 m (3,150 ft). The Santiago Basin is part of the Intermediate Depression and is remarkably flat, interrupted only by a few "island hills;" among them are Cerro Renca , Cerro Blanco , and Cerro Santa Lucía . The basin is approximately 80 kilometers (50 miles) in

6840-549: The central streets of Santiago, further diminishing the role of Valparaíso. The enactment of the Autonomous Municipalities Act empowered municipalities to establish various administrative divisions within the Santiago department, with the goal of enhancing local governance. In 1891, the municipalities of Maipú , Ñuñoa , Renca , Lampa , and Colina were created, followed by Providencia and Barrancas in 1897, and Las Condes in 1901. The La Victoria departmento

6954-474: The city and contribute to a smog problem, particularly during winter due to the lack of rain. The outskirts of the city are surrounded by vineyards, and Santiago is within an hour's drive of both the mountains and the Pacific Ocean. Santiago is the political and financial center of Chile and hosts the regional headquarters of many multinational corporations and organizations . The Chilean government's executive and judiciary branches are based in Santiago, while

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7068-412: The city created a crisis in the city center. To reinvigorate the area, the government transformed the main shopping streets into pedestrian walkways, as it did in the 1970s, and offered tax benefits for the construction of residential buildings, which attracted young adults. The city faced a series of problems due to disorganized growth. During the winter months, air pollution reached critical levels and

7182-474: The city's status as the capital. During the early years of the city, the Spanish suffered from severe shortages of food and other supplies. The Picunches had adopted a strategy of halting cultivation and retreating to more remote locations, which isolated the Spanish and forced them to resort to eating whatever they could find. The shortage of clothing meant that some Spanish had to dress with hides from dogs, cats, sea lions , and foxes . Although Santiago

7296-439: The city, while 45,000 people used trams daily. As the new century began, Santiago underwent various changes due to the rapid growth of industry. Valparaíso, which had previously been the economic center of the country, gradually lost its prominence to the capital. By 1895, 75% of the national manufacturing industry was located in Santiago, while only 28% was in Valparaíso. By 1910, major banks and shops had established themselves in

7410-507: The coast. The mountain range immediately bordering the city on the east is known as the Sierra de Ramón , which was formed due to tectonic activity of the San Ramón Fault . This range reaches 3296 meters at Cerro de Ramón . The Sierra de Ramón represents the " Precordillera " of the Andes. 20 km (12 mi) further east is the even larger Cordillera of the Andes , which has mountains and volcanoes that exceed 6,000 m (19,690 ft) and on which some glaciers are present. The tallest

7524-579: The collapse of the Shah's regime in Iran. Iran became a regional power due to oil money and American weapons. The Shah eventually abdicated and fled the country. This prompted a strike by thousands of Iranian oil workers, significantly reducing oil production in Iran. Saudi Arabia tried to cope with the crisis by increasing production, but oil prices still soared, leading to the "second oil shock." Saudi Arabia significantly reduced oil production, losing most of its revenues. In 1986, Riyadh changed course, and oil production in Saudi Arabia sharply increased, flooding

7638-604: The companies. This occurred in 1960. Prior to the 1973 oil crisis , the Seven Sisters controlled around 85 percent of the world's petroleum reserves . In the 1970s, most countries with large reserves nationalized their reserves that had been owned by major oil companies. Since then, industry dominance has shifted to the OPEC cartel and state-owned oil and gas companies, such as Saudi Aramco , Gazprom (Russia), China National Petroleum Corporation , National Iranian Oil Company , PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Malaysia). A unilateral increase in oil prices

7752-510: The conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management , and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations, we are some quarter-century into an era of stateless corporations—corporations that meet

7866-421: The construction of new avenues, such as the Américo Vespucio Avenue and Panamericana Route 5 , as well as the expansion of 'industrial belts'. The 1962 World Cup provided a new impetus for city improvement efforts, and in 1966, the Santiago Metropolitan Park was established on Cerro San Cristóbal. The Ministry of Housing and Urbanism ( MINVU ) also began to eradicate shantytowns and build new homes. Finally,

7980-471: The construction of the Camino de Cintura , a road surrounding the entire city. The redevelopment of Alameda Avenue also took place during this time, turning it into the city's main road. Also during this era, O'Higgins Park was established with the help of European landscapers in 1873. The public park, known for its large gardens, lakes, and carriage trails, became a landmark in Santiago. Other notable structures were also opened during this period, including

8094-497: The construction of the Ciudad Parque Bicentenario, which marked the bicentenary of the Republic. The trend of constructing tall buildings continued in the eastern sector, which was highlighted by the opening of the Titanium La Portada and Gran Torre Santiago skyscrapers in the Costanera Center complex. On 27 February 2010, a powerful earthquake hit the capital city of Santiago, causing damage to some older buildings and rendering some modern structures uninhabitable. This sparked

8208-643: The creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself. "Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as

8322-466: The eastern sector. This development extended to the Barrio Alto , which became an attractive location for the construction of high-rise buildings. Major companies and financial corporations established themselves in the area, giving rise to a thriving modern business center commonly known as Sanhattan . The departure of these companies to Barrio Alto and the construction of shopping centers all around

8436-510: The end of 1978. Building telecommunications infrastructure was also an important development of this period, as reflected in the construction of the Torre Entel , which, since its construction in 1975, has become one of the symbols of the capital and remained the tallest structure in the country for two decades. After the military coup of 1973 and the establishment of the military regime , significant changes in urban planning did not occur until

8550-481: The firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs . Sanjaya Lall in 1974 proposed a spectrum of scholarly analysis of multinational corporations, from the political right to the left. He put the business school how-to-do-it writers at the extreme right, followed by the liberal laissez-faire economists, and the neoliberals (they remain right of center but do allow for occasional mistakes of

8664-579: The foothills of Las Condes and the La Reina sector. The regulation of growth in Santiago only began in the 1960s with the creation of various development plans for Greater Santiago, a concept that reflected the city's new reality as a much larger urban center. In 1958, the Intercommunal Plan of Santiago was released, which proposed a limit of 38,600 urban and semi-urban hectares for a maximum population of 3,260,000 residents. The plan also included plans for

8778-416: The hands of state-owned companies that operated in one country and sold oil to multinationals such as BP, Shell, ExxonMobil and Chevron. Down through the 1930s, about 80% of the international investments by multinational corporations were concentrated in the primary sector, especially mining (especially oil) and agriculture (rubber, tobacco, sugar, palm oil , coffee, cocoa, and tropical fruits). Most went to

8892-613: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by

9006-415: The internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies. International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm . The latter is also known as

9120-460: The largest recipients. However, 70% of foreign direct investment went into developed countries in the form of stocks and cash flows. The rise in the number of multinational companies could be due to a stable political environment that encourages cooperation, advances in technology that enable management of faraway regions, and favorable organizational development that encourages business expansion into other countries. A multinational corporation (MNC)

9234-567: The latter derived from the Galician evolution of Vulgar Latin Sanctu Iacobu . Allegedly, there was no indigenous name for the area where Santiago is located, but the Mapuche language uses the adapted name Santiaw . Residents of the city and region are referred to as santiaguinos (for males) and santiaguinas (for females). Archaeological evidence suggests that the first human groups arrived in

9348-474: The laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control". As of 1992 , the United States and most OECD countries have the donot legal authority to tax a domiciled parent corporation on its worldwide revenue, including subsidiaries. As of 2019 ,

9462-488: The market with cheap oil. This caused a worldwide drop in oil prices, hence the "third oil shock" or "counter-shock." However, this shock represented something much bigger—the end of OPEC's dominance and its control over oil prices. Iraqi President Saddam Hussein decided to attack Kuwait. The invasion sparked a crisis in the Middle East, prompting Saudi Arabia to request assistance from the United States. The United States sent

9576-531: The marketplace such as externalities). Moving to the left side of the line are nationalists, who prioritize national interests over corporate profits, then the "dependencia" school in Latin America that focuses on the evils of imperialism, and on the far left the Marxists. The range is so broad that scholarly consensus is hard to discern. Anti-corporate advocates criticize multinational corporations for being without

9690-536: The metropolitan area has evolved over time as the city has expanded, incorporating smaller cities and rural areas. The name Santiago was chosen by the Spanish conqueror Pedro de Valdivia when he founded the city in 1541 as "Santiago del Nuevo Extremo," in reference to his home region of Extremadura and as a tribute to James the Great , the patron saint of Spain . The saint's name appears in various forms in Spanish, such as Diego , Jaime , Jacobo , or Santiago , with

9804-561: The most significant architectural projects of the colonial period, the Calicanto Bridge, connecting the city to La Chimba on the north side of the Mapocho River. He also began constructing embankments to prevent river overflows. Although the bridge was completed, its piers were frequently damaged by the river. In 1780, Governor Agustín de Jáuregui hired the Italian architect Joaquín Toesca , who designed several important buildings, including

9918-539: The network returned to full normal service. The city lies in the center of the Santiago Basin , a large bowl-shaped valley consisting of broad and fertile lands surrounded by mountains. The city has a varying elevation, gradually increasing from 400 m (1,312 ft) in the western areas to more than 700 m (2,297 ft) in the eastern areas. Santiago's international airport , in the west, lies at an altitude of 460 m (1,509 ft). Plaza Baquedano , near

10032-412: The population of Santiago to be 507,296 inhabitants, equivalent to 13.6% of the total population of Chile. This represented a growth of 52.5% from the 1907 census, an annual increase of 3.3%, which was almost three times the national average. This growth was mainly due to an influx of farmers from the southern regions who came to work in the factories and railroads that were being built. However, this growth

10146-560: The price collapse in 1998–1999. The United States still maintains close relations with Saudi Arabia. In 2003, U.S. forces invaded Iraq with the aim of removing the dictatorship and gaining access to Iraqi oil reserves, giving the United States greater strategic importance from 2000 to 2008. During this period, there was a constant shortage of oil, but its consumption continued to rise, maintaining high prices and leading to concerns about "peak oil". From 2005 to 2012, there were advances in oil and gas extraction, leading to increased production in

10260-595: The realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries. One of the first multinational business organizations, the East India Company , was established in 1601. After the East India Company came the Dutch East India Company , founded on March 20, 1603, which would become the largest company in the world for nearly 200 years. The main characteristics of multinational companies are: When

10374-426: The streets. The harsh living conditions resulted in widespread diseases like tuberculosis, and took a toll on the homeless population. At the same time, unemployment rates and living costs skyrocketed, while the salaries of the people in Santiago fell. The situation would change several years later with a new industrial boom fostered by CORFO and the expansion of the state apparatus from the late 1930s. At this time,

10488-495: The strong influence of the United States on the global oil market. In 1959, companies lowered the price of oil due to a surplus in the market. This reduction dealt a significant blow to the finances of producers. Saudi oil minister Abdullah Tariki and Venezuela’s Juan Perez Alfonso entered into a secret agreement (the Mahdi Pact), promising that if the price of oil was lowered a second time, they would take collective action against

10602-488: The time. Modernity also spread in the city, with the introduction of the first theaters, the expansion of the telephone network, and the opening of Los Cerrillos Airport in 1928, among other advancements. The perception that the early 20th century was a time of economic prosperity due to technological advancements was in stark contrast to the living conditions of lower social classes. The previous decades of growth resulted in an unprecedented population boom starting in 1929, but

10716-431: The total length of the metropolitan railway to 105 km (65 mi). In the early 1990s, the bus system also underwent a major reform. In 2007, the master plan known as Transantiago was established, although it has faced various challenges since its implementation. Entering the 21st century, rapid development continued in Santiago. The Civic District was revitalized with the creation of the Plaza de la Ciudadanía and

10830-647: The two fortunes. His fortune continued to grow when in 1844, along with Rafael Torreblanca, he invented a new machine to extract metals. He obtained an exclusive permit for its use from Manuel Bulnes ' government for ten years. In 1850, Matías became director of The Copiapó Mining Group, the most powerful association in Chile. Santiago, Chile Santiago ( / ˌ s æ n t i ˈ ɑː ɡ oʊ / , US also / ˌ s ɑː n -/ ; Spanish: [sanˈtjaɣo] ), also known as Santiago de Chile ( Spanish: [san̪ˈtja.ɣo ðe ˈtʃi.le] ),

10944-417: The urban area covered 6,500 hectares, which increased to 20,900 in 1960 and to 38,296 in 1980. Although growth was mainly concentrated in communities such as Barrancas to the west, Conchalí to the north, and La Cisterna and La Granja to the south, the center of the city lost population, leaving more space for commercial, banking, and government development. The upper class, on the other hand, began to settle in

11058-484: The world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902) was one of the few businessmen in the era who became Prime Minister (of South Africa 1890–1896). His mining enterprises included the British South Africa Company and De Beers . The latter company practically controlled the global diamond market from its base in southern Africa. In 1945, the United States

11172-573: The world without a concentration in one area have been called stateless or "transnational" (although "transnational corporation" is also used synonymously with "multinational corporation" ), but as of 1992, a corporation must be legally domiciled in a particular country and engage in other countries through foreign direct investment and the creation of foreign subsidiaries. Geographic diversification can be measured across various domains, including ownership and control, workforce, sales, and regulation and taxation. Multinational corporations may be subject to

11286-503: The worldwide revenue of a foreign subsidiary, and taxation is complicated by transfer pricing arrangements with parent corporations. For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements. Disputes between corporations in different nations

11400-513: Was accepted as Supreme Director and, like his father, undertook several important projects for the city. During the Patria Nueva era, previously closed institutions were reopened. The General Cemetery was inaugurated, work on the San Carlos Canal was completed, and the drying riverbed in the south arm of the Mapocho River, known as La Cañada, which had been used as a landfill for some time,

11514-562: Was also built in the north of the city: the Mapocho Station . The Parque Forestal was established on the southern side of the Mapocho river, and new buildings such as the Museum of Fine Arts , the Barros Arana public boarding school , and the National Library were opened. In addition, a sewer system was installed, serving approximately 85% of the city's population. The 1920 census estimated

11628-402: Was also divided, leading to the creation of Lo Cañas in 1891, which was then further split into La Granja and Puente Alto in 1892, followed by La Florida in 1899, and La Cisterna in 1925. The San Cristobal Hill underwent a prolonged process of development during this period. In 1903, an astronomical observatory was established on the hill, and the following year, construction began on

11742-449: Was concentrated in the suburbs and not in the city center. During this time, the downtown district consolidated as a commercial, financial, and administrative center, with the establishment of various shops and businesses around Ahumada Street and a Civic District in the vicinity of the Palace of La Moneda. The latter project involved the construction of modernist buildings for the offices of

11856-470: Was divided into eight blocks from north to south and ten blocks from east to west, between the Mapocho River and the Cañada with each quarter-block, or solar , granted to settlers. The colonial architecture following the grid plan consisted of one or two-story houses, adobe walls, tile roofs, and rooms around interior corridors and patios . Valdivia left for the south with his troops months later, initiating

11970-520: Was due to suburban expansion to the south and west of the capital, as well as the growth of the bustling district of La Chimba, which resulted from the division of old properties in the area. This new peripheral development marked the end of the previous checkerboard structure that had dominated the city center. During the Republican era, several institutions were founded, including the University of Chile ,

12084-553: Was elected to the Chamber of Deputies , representing the Petorca (1849–1852) and Quillota (1852–1855). He was elected senator between 1855 and 1864 but died on March 21, 1863, in Santiago. He quit his work at the post office to begin exporting animals to Argentina , and the success of this business led him to search for new ventures, one being the new silver mines in Copiapó . At the end of

12198-438: Was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for the seven multinational companies that dominated the global petroleum industry from the mid-1940s to the mid-1970s. The nationalization of the Iranian oil industry in 1951 by Iranian Prime Minister Mohammad Mosaddegh and the subsequent boycott of Iranian oil by all companies had dramatic consequences for Iran and

12312-399: Was facing the threat of permanent destruction early on, due to attacks from indigenous peoples, earthquakes, and floods, the city began to grow rapidly. Out of the 126 blocks designed by Pedro de Gamboa in 1558, 40 were occupied. In 1580, the first major buildings in the city started to be erected, marked by the placement of the foundation stone of the first Cathedral in 1561 and the building of

12426-448: Was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but

12540-546: Was labeled as "the largest nonviolent transfer of wealth in human history." The OPEC sought immediate discussions regarding participation in national oil industries. Companies were not inclined to object as the price hike benefited both them and OPEC members. In 1980, the Seven Sisters were entirely displaced and replaced by national oil companies (NOCs). The rise in oil prices burdened developing countries with balance of payments deficits, leading to an energy crisis. OPEC members had to abandon their plan of redistributing wealth from

12654-428: Was largely driven by the construction of housing projects for middle-class families. Meanwhile, high-income families relocated to the foothills, now commonly referred to as Barrio Alto , boosting the population of Las Condes and giving rise to young communes, including Lo Barnechea and Vitacura , both established in 1981 and 1991, respectively. The area around Providencia Avenue became an important commercial hub in

12768-487: Was met with tragedy as the Great Depression hit. The collapse of the nitrate industry in the north left 60,000 people unemployed, compounded by a decline in agricultural exports, resulting in an estimated 300,000 unemployed people nationwide. Desperate for survival, many migrants flocked to Santiago and its thriving industry. However, they often found themselves struggling to find housing, with many being forced to live on

12882-503: Was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore, the United States turned to foreign oil sources, which had a significant impact on the recovery of the West after World War II. Most of the world's oil was found in Latin America and the Middle East, particularly in the Arab states of the Persian Gulf. This increase in non-American production

12996-458: Was transformed into an avenue now known as the Alameda de las Delicias . Two earthquakes struck the city in the 19th century: one on November 19, 1822, and another on February 20, 1835. Despite these disasters, the city continued to grow rapidly. In 1820, the population was recorded as 46,000, but by 1854, it had risen to 69,018. By 1865, the census reported 115,337 residents. This significant increase

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