Abstract: The Emergence of Multinational Enterprise in Ecuador: A Case Study of the Ecuadorian Corporation
Ecuador's first multinational enterprise, the Ecuadorian Corporation, was founded in London on April 19, 1913, by members of the same syndicate of North American and British capitalists who financed and built Ecuador's Guayaquil and Quito Railroad. In exploring the connection between the railroad promoters and the Ecuadorian Corporation, I place special emphasis on two members of the original railroad syndicate: Archer Harman and Evermont Hope Norton. Between 1904 and 1913, Harman and Norton developed several subsidiary companies to enhance the railroad's earnings prospects. When political problems arose between the railroad and the Ecuadorian government over distribution of the earnings of the subsidiary companies, the Ecuadorian Corporation was formed as a separate holding company to protect the subsidiary companies from a possible government intervention. I provide a history of the Ecuadorian Corporation from its founding in 1913 to its dissolution in 1986 as the result of a hostile takeover by the Rooney-Pace Corporation.