What is Industrial Corporation and Multinationals Corporation?

An industrial corporation is a business that is legally independent from its members. Corporations may incur or pay debt, negotiate contracts, sue and be sued. These larger corporations sell stocks to shareholders, and the shareholders legally own the company. Management of the company remains separate from, but accountable to, the ownership.

The shareholders are organized with a board of directors who hold regular meetings and make decisions on broad policies governing the corporation. Although many Americans own stock, they normally do not participate in regular board meetings or exert significant control over corporate decisions.

A Multinationals are corporations that conduct business in many different countries. These corporations produce more goods and wealth than many smaller countries. Their existence, though, remains controversial.

They garner success by entering less developed nations, bringing industry into these markets with cheaper labor, and then exporting those goods to more developed countries. Business advocates point to the higher standard of living in most countries where multinationals have entered the economy. Critics charge that multinationals exploit poor workers and natural resources, creating environmental havoc.