Why do national firms become multinational? Critically Discuss. We must first define between a national firm and one that is multinational. A definition of a national firm could be “a firm that’s market is mainly in the country it sells into and has no Foreign Direct Investment in any other country apart from the one in which it sells into. A multinational on the other hand is a lot harder to define because over …showed first 75 words of 1780 total…

…showed last 75 words of 1780 total…century the only real difference is that the huge Petroleum Companies, Gold Miners and Fruit growers only became multinational to get close to there market because the transport of such goods was more difficult than it is today. Thus it was an imperative to become multinational if you were to succeed. Perhaps Richard Longworth in his recent publication, The coming crisis for first world nations, 1998 has got it right with describing multinationals as Global Corporations.