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116-508: Torrent Group is an Indian multinational conglomerate , based in Ahmedabad . It was founded by Uttambhai Nathalal Mehta , and now run by his sons, Sudhir and Samir Mehta . The core businesses of the group are gas, pharmaceuticals and power. As of September 2024, it has market capitalization of $ 25 billion. The various companies under the Torrent banner are: In 2020, Torrent Group contributed

232-766: 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

348-498: 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

464-429: 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

580-549: A granddaughter of Nasser al-Din Shah through her mother Zi'a es-Saltaneh . In 1909, Mosaddegh pursued education abroad in Paris, France, where he studied at the Institut d'études politiques de Paris (Sciences Po). He studied there for two years, returning to Iran because of illness in 1911. After two months, Mosaddegh returned to Europe to study a Doctorate of Laws ( doctorate en Droit ) at

696-586: A massive, unbroken daisy chain of cars...In the final seven or eight miles approaching the village, traffic became so gridlocked that mourners were forced to...complete the journey on foot. The U.S. role in Mosaddegh's overthrow was not formally acknowledged for many years, although the Eisenhower administration vehemently opposed Mossadegh's policies. President Eisenhower wrote angrily about Mosaddegh in his memoirs, describing him as impractical and naive. Eventually,

812-512: A means of checking the power of the Tudeh Party , which had been agitating the peasants by criticising his lack of land reform. However, during this time Iranians were "becoming poorer and unhappier by the day", in large part due to the British-led boycott. As Mosaddegh's political coalition began to fray, his enemies increased in number. Partly through the efforts of Iranians sympathising with

928-515: A military prison, well short of the death sentence requested by prosecutors. After hearing the sentence, Mossadegh was reported to have said with a calm voice of sarcasm: "The verdict of this court has increased my historical glories. I am extremely grateful you convicted me. Truly tonight the Iranian nation understood the meaning of constitutionalism." Mosaddegh was kept under house arrest at his Ahmadabad residence, until his death on 5 March 1967. He

1044-487: 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

1160-451: A month after the Shah was deposed, hundreds of thousands of Iranians marked the 12th anniversary of Mossadegh's death. In Ahmadabad, where he was buried, Iranian leaders and politicians eulogized him in a way that would've been unthinkable before the Shah's removal. It was estimated that the crowd in size was over one million. The event was described as: For sixty solid miles, the highway from Tehran to Mossadeq's burial site...transformed into

1276-637: A period of one year. Finally, to end Mossadegh's destabilising influence that threatened the supply of oil to the West and could potentially pave the way for a communist takeover of the country, the US made an attempt to depose him. In March 1953, Secretary of State John Foster Dulles directed the CIA , which was headed by his younger brother Allen Dulles , to draft plans to overthrow Mossadegh. On 4 April 1953, Dulles approved $ 1 million to be used "in any way that would bring about

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1392-536: A range of social and political measures such as social security, land reforms and higher taxes including the introduction of taxation on the rent of land. His government's most significant policy was the nationalisation of the Iranian oil industry , which had been built by the British on Persian lands since 1913 through the Anglo-Persian Oil Company (APOC/ AIOC ), later known as British Petroleum (BP). In

1508-552: A single-clause bill to parliament to grant him emergency "dictatorial decree" powers for six months to pass "any law he felt necessary for obtaining not only financial solvency, but also electoral, judicial, and educational reforms", in order to implement his nine-point reform program to bypass the stalled negotiations of the nationalisation of the oil industry. On 3 August 1952, the Majlis voted in approval, and elected Ayatollah Kashani as House Speaker. Kashani's Islamic scholars, as well as

1624-490: A total of ₹ 100 crore to the PM CARES Fund to fight against the coronavirus pandemic. This article about an Indian company is a stub . You can help Misplaced Pages by expanding it . Multinational corporation 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

1740-539: A wide range of social reforms: unemployment compensation was introduced, factory owners were ordered to pay benefits to sick and injured workers, and peasants were freed from forced labour in their landlords' estates. In 1952, Mosaddegh passed the Land Reform Act which forced landlords to place 20% of their revenue into a development fund. This development fund paid for various projects such as public baths, rural housing, and pest control. On 1 May, Mosaddegh nationalised

1856-410: 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

1972-865: 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

2088-625: The Anglo-Iranian Oil Company , cancelling its oil concession, which was otherwise set to expire in 1993, and expropriating its assets. Mosaddegh saw the AIOC as an arm of the British government controlling much of the oil in Iran, pushing him to seize what the British had built in Iran. The next month, a committee of five majlis deputies was sent to Khuzistan to enforce the nationalisation. Mosaddegh justified his nationalisation policy by claiming Iran

2204-602: The Azerbaijan Province . In 1923, he was re-elected to the Majlis. In 1925, the supporters of Reza Khan in the Majlis proposed legislation to dissolve the Qajar dynasty and appoint Reza Khan the new Shah. Mossadegh voted against such a move, arguing that such an act was a subversion of the 1906 Iranian constitution . He gave a speech in the Majlis, praising Reza Khan's achievements as prime minister while encouraging him to respect

2320-620: 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 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 ,

2436-405: The Tudeh Party , proved to be two of Mosaddegh's key political allies, although relations with both were often strained. In addition to the reform program, which intended to make changes to a broad region of laws covering elections, financial institutions, employment, the judiciary, the press, education, health, and communications services, Mosaddegh tried to limit the monarchy's powers, cutting

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2552-521: The United Nations Security Council , where, on 15 October 1951, Mosaddegh declared that "the petroleum industry has contributed nothing to well-being of the people or to the technological progress or industrial development of my country." The British government also threatened legal action against purchasers of oil produced in the Iranian refineries and obtained an agreement with its sister international oil companies not to fill in where

2668-704: The University of Neuchâtel in Switzerland . In June 1913, Mosaddegh received his doctorate and in doing so became the first Iranian to receive a PhD in Law from a European university. Mosaddegh taught at the Tehran School of Political Science at the start of World War I before beginning his political career. Mosaddegh started his political career with the Iranian Constitutional Revolution of 1905–07. At

2784-745: The history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were 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

2900-457: The "vitriol he had once reserved for the British". The reason for difference of opinion among Makki and Mosaddegh was the sharp response of Mosaddegh to Kashani, who was an inoffensive scholar who attracted public support. Hossein Makki strongly opposed the dissolution of the parliament by Mossadegh and evaluated in the long run at his loss because with the closure of the parliament, the right to dismiss

3016-557: The 79 deputies elected. Yet none of those present vetoed the statement, and completion of the elections was postponed indefinitely. The 17th Majlis convened in April 1952, with the minimum required of the 136 seats filled. Throughout his career, Mosaddegh strove to increase the power parliament held versus the expansion of the crown's authority. But tension soon began to escalate in the Majlis. Conservative, pro-Shah, and pro-British opponents refused to grant Mosaddegh special powers to deal with

3132-580: The AIOC was boycotting Iran. The entire Iranian oil industry came to a virtual standstill, oil production dropping almost 96% from 664,000 barrels (105,600 m ) in 1950 to 27,000 barrels (4,300 m ) in 1952. This Abadan Crisis reduced Iran's oil income to almost nothing, putting a severe strain on the implementation of Mosaddegh's promised domestic reforms. At the same time, BP and Aramco doubled their production in Saudi Arabia, Kuwait and Iraq, to make up for lost production in Iran so that no hardship

3248-541: The Bazaar closing down in Tehran. Over 250 demonstrators in Tehran, Hamadan, Ahvaz, Isfahan, and Kermanshah were killed or suffered serious injuries. On the fourth day of mass demonstrations, Ayatollah Abol-Ghasem Kashani called on the people to wage a "holy war" against Qavam. The following day, Si-ye Tir (the 30th of Tir on the Iranian calendar), military commanders ordered their troops back to barracks, fearful of over-straining

3364-549: The British, and partly in fear of the growing dictatorial powers of the Prime Minister, several former members of Mosaddegh's coalition turned against him, fearing arrest. They included Mozzafar Baghai , head of the worker-based Toilers party; Hossein Makki , who had helped lead the takeover of the Abadan refinery and was at one point considered Mosaddegh's heir apparent; and most outspokenly Ayatollah Kashani, who damned Mosaddegh with

3480-491: The CIA's involvement with the coup was exposed. This caused controversy within the organisation and the CIA congressional hearings of the 1970s. CIA supporters maintained that the coup was strategically necessary and praised the efficiency of the agents responsible. Critics say the scheme was paranoid, colonial, illegal, and immoral—and truly caused the "blowback" suggested in the pre-coup analysis. The extent of this "blowback", over time,

3596-546: 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

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3712-640: 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 the 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from

3828-557: 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

3944-490: The Iranian government would not be accepted on the world market." Two months later the AIOC evacuated its technicians and closed down the oil installations. Under nationalised management, many refineries lacked the trained technicians that were needed to continue production. The British government announced a de facto blockade and embargo, reinforced its naval force in the Persian Gulf and lodged complaints against Iran before

4060-606: The National Front. There was a special focus on the Anglo-Iranian Oil Company and the heavy involvement of foreign actors and influences in Iranian affairs. Although Iran was not officially a colony or a protectorate, it was still heavily controlled by foreign powers beginning with concessions provided by the Qajar Shahs and leading up to the oil agreement signed by Reza Shah in 1933. The new administration introduced

4176-561: 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

4292-545: 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,

4408-504: The Prime minister was made by the Shah. The British government had grown increasingly distressed over Mosaddegh's policies and were especially bitter over the loss of their control of the Iranian oil industry. Repeated attempts to reach a settlement had failed, and, in October 1952, Mosaddegh declared Britain an enemy and cut all diplomatic relations. Since 1935, the Anglo-Persian Oil Company had

4524-469: The Rashidian brothers (two of Iran's most influential royalists) in the hope of buying off, according to CIA estimates, "the armed forces, the Majlis (Iranian parliament), religious leaders, the press, street gangs, politicians and other influential figures". Thus, in his statement asserting electoral manipulation by "foreign agents", Mosaddegh suspended the elections. His National Front party had made up 30 of

4640-481: The Shah confirmed Mosaddegh as Prime Minister after the Majlis ( Parliament of Iran ) elected Mosaddegh by a vote of 79–12. The Shah was aware of Mosaddegh's rising popularity and political power, after a period of assassinations by Fada'iyan-e Islam and political unrest by the National Front . Demonstrations erupted in Tehran after Mosaddegh was elected, with crowds further invigorated by the speeches of members from

4756-465: The Shah had done up to that point. The Shah refused, seeing it as a means for Mosaddegh to consolidate his power over the government at the expense of the monarchy. In response, Mosaddegh announced his resignation appealing directly to the public for support, pronouncing that "in the present situation, the struggle started by the Iranian people cannot be brought to a victorious conclusion". Veteran politician Ahmad Qavam (also known as Ghavam os-Saltaneh)

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4872-509: The Shah had only initiated land reform in January 1951, where all territory inherited by the Crown was sold to peasants at 20% of the assessed value over a payment period of 25 years, Mosaddegh decreed a new land reform law to supersede it, establishing village councils and increasing the peasants' share of production. This weakened the landed aristocracy by imposing a 20% tax on their income—of which 20%

4988-471: The Shah returned from Rome. Zahedi's new government soon reached an agreement with foreign oil companies to form a consortium and "restore the flow of Iranian oil to world markets in substantial quantities", giving the United States and Great Britain the lion's share of the restored British holdings. In return, the US massively funded the Shah's resulting government, until the Shah's overthrow in 1979 . As soon as

5104-416: The Shah was terrified to attempt such a dangerously unpopular and risky move against Mosaddegh. It would take much persuasion and many US-funded meetings, which included bribing his sister Ashraf with a mink coat and money, to successfully change his mind. Mosaddegh became aware of the plots against him and grew increasingly wary of conspirators acting within his government. According to Donald Wilber , who

5220-400: The Shah's personal budget, forbidding him to communicate directly with foreign diplomats, transferring royal lands back to the state and expelling the Shah's politically active sister Ashraf Pahlavi . However, six months proved not long enough, and Mosaddegh asked for an extension in January 1953, successfully pressing Parliament to extend his emergency powers for another 12 months. Though

5336-514: The Soviet sphere at a time of high Cold War fears. Though his suggestion was rebuffed by Eisenhower as "paternalistic", Churchill's government had already begun "Operation Boot", and simply waited for the next opportunity to press the Americans. On 28 February 1953, rumours spread by British-backed Iranians that Mosaddegh was trying to exile the Shah from the country gave the Eisenhower administration

5452-571: 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 the world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902)

5568-458: 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

5684-636: 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

5800-478: The US government formally acknowledged its role in the coup as being a part of its foreign policy initiatives, including paying protestors and bribing officials. Mosaddegh was born to a prominent Persian family of high officials in Ahmedabad, near Tehran , on 16 June 1882; his father, Mirza Hideyatu'llah Ashtiani, was the finance minister under the Qajar dynasty , and his mother, Princess Malek Taj Najm-es-Saltaneh,

5916-527: 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

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6032-506: 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

6148-609: 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

6264-461: 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

6380-471: 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

6496-567: 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 was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for

6612-610: 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

6728-451: 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

6844-473: The aftermath of the overthrow, Mohammad Reza Pahlavi returned to power, and negotiated the Consortium Agreement of 1954 with the British, which gave split ownership of Iranian oil production between Iran and western companies until 1979. Mosaddegh was imprisoned for three years, then put under house arrest until his death and was buried in his own home so as to prevent a political furor. In 2013,

6960-527: The age of 24, he was elected from Isfahan to the newly inaugurated Persian Parliament, the Majlis of Iran . However, he was unable to assume his seat, because he had not reached the legal age of 30. During this period he also served as deputy leader of the Society of Humanity , under Mostowfi ol-Mamalek . In protest at the Anglo-Persian Treaty of 1919 , he relocated to Switzerland, from where he returned

7076-462: 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 ,

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7192-418: The bill, on the grounds that it would "unjustly discriminate patriots who had been voting for the last forty years", thus leaving the National Front to compete against conservatives, royalists, and tribal leaders alike in the upcoming election. His government came under scrutiny for ending the 1952 election before rural votes could be fully counted. According to historian Ervand Abrahamian : "Realizing that

7308-470: The capital and bombarded the prime minister's official residence. With loyalist troops overwhelmed, Mossadegh was taken into hiding by his aides, narrowly escaping the mob that set in to ransack his house. The following day, he surrendered himself at the Officers' Club, where General Zahedi had been set up with makeshift headquarters by the CIA. Zahedi announced an order for his arrest on the radio, and Mosaddegh

7424-579: 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

7540-650: 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

7656-510: 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

7772-562: The constitution and stay as the prime minister. On 12 December 1925, the Majlis deposed the young Shah Ahmad Shah Qajar and declared Reza Shah the new monarch of the Imperial State of Persia, and the first Shah of the Pahlavi dynasty . Mosaddegh then retired from politics, due to disagreements with the new regime. In 1941, Reza Shah Pahlavi was forced by the British to abdicate in favour of his son Mohammad Reza Pahlavi . In 1944, Mosaddegh

7888-496: The coup succeeded, many of Mosaddegh's former associates and supporters were tried, imprisoned, and tortured. Some were sentenced to death and executed. The minister of foreign affairs and the closest associate of Mosaddegh, Hossein Fatemi , was executed by order of the Shah's military court. The order was carried out by firing squad on 10 November 1954. On 21 December 1953, Mosaddegh was sentenced to three years' solitary confinement in

8004-643: 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

8120-503: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Mohammad Mosaddegh Mohammad Mosaddegh ( Persian : محمد مصدق , IPA: [mohæmˈmæd(-e) mosædˈdeɢ] ; 16 June 1882 – 5 March 1967) was an Iranian politician, author, and lawyer who served as the 30th Prime Minister of Iran from 1951 to 1953, elected by the 16th Majlis . He

8236-447: The economic crisis caused by the sharp drop in revenue and voiced regional grievances against the capital Tehran, while the National Front waged "a propaganda war against the landed upper class". On 16 July 1952, during the royal approval of his new cabinet , Mosaddegh insisted on the constitutional prerogative of the Prime Minister to name a Minister of War and the Chief of Staff, something

8352-467: The enlisted men's loyalty, and left Tehran in the hands of the protesters. Frightened by the unrest, the Shah asked for Qavam's resignation, and re-appointed Mosaddegh to form a government, granting him control over the Ministry of War he had previously demanded. The Shah asked whether he should step down as monarch, but Mosaddegh declined. More popular than ever, a greatly strengthened Mosaddegh introduced

8468-486: The exclusive rights to Iranian oil. Earlier in 1914, the British government had purchased 51% of its shares and became the majority shareholder. After the British Royal Navy converted its ships to use oil as fuel, the corporation was considered vital to British national security, and the company's profits partially alleviated Britain's budget deficit. Engulfed in a variety of problems following World War II, Britain

8584-482: The fall of Mosaddegh". Soon the CIA's Tehran station started to launch a propaganda campaign against Mossadegh. Finally, according to The New York Times , in early June, American and British intelligence officials met again, this time in Beirut , and put the finishing touches on the strategy. Soon afterward, according to his later published accounts, the chief of the CIA's Near East and Africa division, Kermit Roosevelt, Jr.

8700-481: 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

8816-572: The following year after being invited by the new Iranian prime minister, Hassan Pirnia (Moshir-ed-Dowleh), to become his minister of justice. While en route to Tehran, he was asked by the people of Shiraz to become the governor of the Fars Province . He was later appointed finance minister , in the government of Ahmad Qavam (Qavam os-Saltaneh) in 1921, and then foreign minister in the government of Moshir-ed-Dowleh in June 1923. He then became governor of

8932-444: The grandson of US President Theodore Roosevelt , arrived in Tehran to direct it. In 2000, The New York Times made partial publication of a leaked CIA document titled Clandestine Service History – Overthrow of Premier Mosaddegh of Iran – November 1952 – August 1953 . The plot, known as Operation Ajax, centered on convincing Iran's monarch to issue a decree to dismiss Mosaddegh from office, as he had attempted some months earlier. But

9048-416: 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

9164-457: The impetus to join the plan. The United States and the United Kingdom agreed to work together toward Mosaddegh's removal and began to publicly denounce Mosaddegh's policies for Iran as harmful to the country. In the meantime, the already precarious alliance between Mosaddegh and Kashani was severed in January 1953, when Kashani opposed Mosaddegh's demand that his increased powers be extended for

9280-415: 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

9396-460: 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)

9512-474: 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 ,

9628-434: 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

9744-475: 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

9860-679: The net profits on oil be set aside to meet all the legitimate claims of the company for compensation. It has been asserted abroad that Iran intends to expel the foreign oil experts from the country and then shut down oil installations. Not only is this allegation absurd; it is utter invention. The confrontation between Iran and Britain escalated as Mosaddegh's government refused to allow the British any involvement in their former enterprise, and Britain made sure Iran could sell no oil, which it considered stolen. In July, Mosaddegh broke off negotiations with AIOC after it threatened to "pull out its employees" and told owners of oil tanker ships that "receipts from

9976-450: The opposition would take the vast majority of the provincial seats, Mosaddegh stopped the voting as soon as 79 deputies—just enough to form a parliamentary quorum—had been elected." An alternative account is offered by journalist Stephen Kinzer : Beginning in the early 1950s under the guidance of C.M. Woodhouse , chief of the British intelligence station in Tehran, Britain's covert operations network had funnelled roughly £10,000 per month to

10092-457: The power of the British company, we would also eliminate corruption and intrigue, by means of which the internal affairs of our country have been influenced. Once this tutelage has ceased, Iran will have achieved its economic and political independence. The Iranian state prefers to take over the production of petroleum itself. The company should do nothing else but return its property to the rightful owners. The nationalization law provides that 25% of

10208-560: 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

10324-470: The prime minister power to make law was submitted to voters, and it passed with 99 per cent approval, 2,043,300 votes to 1300 votes against. According to historian Mark Gasiorowski, "There were separate polling stations for yes and no votes, producing sharp criticism of Mosaddeq" and that the "controversial referendum...gave the CIA's precoup propaganda campaign to show up Mosaddeq as an anti-democratic dictator an easy target". On or around 16 August, Parliament

10440-595: 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

10556-488: The second coup, circulating a false account that Mossadegh attempted to seize the throne and bribed Iranian agents. Soon, massive popular protests, aided by Roosevelt's team, took place across the city and elsewhere with tribesmen at the ready to assist the coup, with anti- and pro-monarchy protesters, both being paid by Roosevelt. By paying mobs to demonstrate, tricking Mossadegh into urging his supporters to stay home, and bribing and mobilising officers against Mossadegh, he

10672-430: The secret U.S. overthrow of Mosaddegh served as a rallying point in anti-US protests during the 1979 Iranian Revolution , and to this day he is one of the most popular figures in Iranian history. The withdrawal of support for Mosaddegh by the powerful Shia clergy has been regarded as having been motivated by their fear of a communist takeover. Some argue that while many elements of Mosaddegh's coalition abandoned him, it

10788-407: 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 the international oil market. Iran was unable to sell any of its oil. In August 1953,

10904-404: 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 the strong influence of

11020-573: 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

11136-503: 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

11252-399: Was "the rightful owner..." of all the oil in Iran, and also pointing out Iran could use the money, in a 21 June 1951 speech: Our long years of negotiations with foreign countries... have yielded no results thus far. With the oil revenues, we could meet our entire budget and combat poverty, disease, and backwardness among our people. Another important consideration is that by the elimination of

11368-498: Was a member of the Iranian parliament from 1923 , and served through a contentious 1952 election into the 17th Iranian Majlis , until his government was overthrown in the 1953 Iran coup aided by the intelligence agencies of the United Kingdom ( MI6 ) and the United States ( CIA ), led by Kermit Roosevelt Jr. His National Front was suppressed from the 1954 election . Before its removal from power, his administration introduced

11484-433: Was able to force a military confrontation outside Mossadegh's home. The protests turned increasingly violent, leaving almost 300 dead, at which point the pro-monarchy leadership, led by retired army General and former Minister of Interior in Mosaddegh's cabinet, Fazlollah Zahedi , interceded, joined with underground figures such as the Rashidian brothers and local strongman Shaban Jafari . Pro-Shah tank regiments stormed

11600-508: Was appointed as Iran's new Prime Minister. On the day of his appointment, he announced his intention to resume negotiations with the British to end the oil dispute, a reversal of Mosaddegh's policy. The National Front—along with various Nationalist, Islamist, and socialist parties and groups —including Tudeh—responded by calling for protests, assassinations of the Shah and other royalists, strikes and mass demonstrations in favour of Mosaddegh. Major strikes broke out in all of Iran's major towns, with

11716-465: Was denied a funeral and was buried in his living room, despite his request to be buried in the public graveyard, beside the victims of the political violence on 30 Tir 1331 (21 July 1952). Although Mosaddegh was never directly elected as Prime Minister, he enjoyed massive popularity throughout most of his career. Despite beginning to fall out of favour during the later stages of the Abadan Crisis,

11832-403: Was diverted back to the crop-sharing tenants and their rural banks, and also by levying heavy fines for compelling peasants to work without wages. Mosaddegh attempted to abolish Iran's centuries-old feudal agriculture sector by replacing it with a system of collective farming and government land ownership, which centralised power in his government. Ann Lambton indicates that Mosaddegh saw this as

11948-451: Was elected President. In November and December, British intelligence officials suggested to American intelligence that the Iranian prime minister should be ousted. British prime minister Winston Churchill suggested to the incoming Eisenhower administration that Mosaddegh, despite the latter's open dislike of communism, would become reliant on the pro-Soviet Tudeh Party , resulting in Iran "increasingly turning towards communism " and towards

12064-428: Was felt in Britain. Still enormously popular in late 1951, Mosaddegh called elections, and introduced a modified version of his 1944 electoral reform bill. As his base of support was in urban areas and not in the provinces, the proposed reform no longer barred illiterate voters, but placed them into a separate category from literate voters and increased the representation of the urban population. The opposition defeated

12180-448: 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

12296-463: Was increased in various ways by the Shah himself. As a precautionary measure, he flew to Baghdad and from there hid safely in Rome. He actually signed two decrees, one dismissing Mosaddegh and the other nominating the CIA's choice, General Zahedi, as Prime Minister. These decrees, called Farmāns , played a major role in giving legitimacy to the coup, and were further spread by CIA officials. On 22 August,

12412-434: Was involved in the plot to remove Mossadegh from power, in early August, Iranian CIA operatives pretending to be socialists and nationalists threatened Muslim leaders with "savage punishment if they opposed Mossadegh", thereby giving the impression that Mossadegh was cracking down on dissent earlier than planned, and stirring anti-Mossadegh sentiments within the religious community. A referendum to dissolve parliament and give

12528-546: 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

12644-463: Was not completely clear to the CIA, as they had an inaccurate picture of the stability of the Shah's regime. The Iranian Revolution of 1979 caught the CIA and the U.S. very much off guard (as CIA reporting a mere month earlier predicted no imminent insurrectionary turbulence whatsoever for the Shah's regime) and resulted in the overthrow of the Shah by a fundamentalist faction opposed to the U.S., headed by Ayatollah Khomeini . In retrospect, not only did

12760-579: Was once again elected to parliament. This time he took the lead of Jebhe Melli ( National Front of Iran , created in 1949), an organisation he had founded with nineteen others such as Hossein Fatemi , Ahmad Zirakzadeh , Ali Shayegan and Karim Sanjabi , aiming to establish democracy and end the foreign presence in Iranian politics, especially by nationalising the Anglo-Iranian Oil Company 's (AIOC) operations in Iran. In 1947 Mossadegh once again announced retirement, after an electoral-reform bill he had proposed failed to pass through Majlis. On 28 April 1951,

12876-489: 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 was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore,

12992-441: Was suspended indefinitely, and Mosaddeq's emergency powers were extended. Declassified documents released by the CIA in 2017 revealed that—after the Shah had fled to Italy—CIA headquarters believed the coup to have failed. Following the initial failed coup by the foreign-backed General Fazlollah Zahedi, the CIA sent Roosevelt a telegram on 18 August 1953 telling him to flee Iran immediately, but Roosevelt ignored it and began work on

13108-534: Was the granddaughter of the reformist Qajar prince Abbas Mirza , and a great-granddaughter of Fath-Ali Shah Qajar . When Mosaddegh's father died in 1892, his uncle was appointed the tax collector of the Khorasan province and was bestowed with the title of Mosaddegh-os-Saltaneh by Nasser al-Din Shah . Mosaddegh himself later bore the same title, by which he was still known to some long after titles were abolished. In 1901, Mosaddegh married Zahra Emami (1879–1965),

13224-537: Was the loss of support from Ayatollah Abol-Ghasem Kashani and another cleric that was fatal to his cause, reflective of the dominance of the Ulema in Iranian society and a portent of the Islamic Revolution to come. The loss of the political clerics effectively cut Mosaddegh's connections with the lower middle classes and the Iranian masses which are crucial to any popular movement in Iran. On March 5, 1979, not even

13340-473: Was transferred to a military jail shortly after. The Shah finally agreed to Mossadegh's overthrow after Roosevelt said that the United States would proceed with or without him, and formally dismissed the prime minister in a written decree, an act that had been made part of the constitution during the Constitutional Assembly of 1949, convened under martial law, at which time the power of the monarchy

13456-436: Was unable to resolve the issue single-handedly and looked towards the United States to settle the matter. Initially, the US had opposed British policies. After mediation had failed several times to bring about a settlement, American Secretary of State Dean Acheson concluded that the British were "destructive, and determined on a rule-or-ruin policy in Iran." The American position shifted in late 1952 when Dwight D. Eisenhower

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