Multinational corporation (MNC),
Definition of Multinational corporation (MNC):
A multinational corporation, or multinational enterprise, is an international corporation that derives at least a quarter of its revenues outside its home country. Many multinational enterprises are based in developed nations. Multinational advocates say they create high-paying jobs and technologically advanced goods in countries that otherwise would not have access to such opportunities or goods. However, critics of these enterprises believe these corporations have undue political influence over governments, exploit developing nations, and create job losses in their own home countries.
A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. A multinational company generally has offices and/or factories in different countries and a centralized head office where they coordinate global management. These companies, also known as international, stateless, or transnational corporate organizations tend to have budgets that exceed those of many small countries. .
An enterprise operating in several countries but managed from one (home) country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation.
There are four categories of multinational corporations: (1) a multinational, decentralized corporation with strong home country presence, (2) a global, centralized corporation that acquires cost advantage through centralized production wherever cheaper resources are available, (3) an international company that builds on the parent corporations technology or R&D, or (4) a transnational enterprise that combines the previous three approaches. According to UN data, some 35,000 companies have direct investment in foreign countries, and the largest 100 of them control about 40 percent of world trade.
How to use Multinational corporation (MNC) in a sentence?
- MNC can have a positive economic effect on the country where the business is taking place.
- If you want your product to grow you can turn your business into a multinational corporation to find many new customers.
- Multinational corporations participate in business in two or more countries.
- Many believe manufacturing outside of the U.S. has a negative effect on the economy with fewer job opportunities.
- If you want your product to grow you can make it a multinational corporation to open up many opportunities for you.
- Transnational business is considered diversifying the investment.
- It was a big step up for Jim when he left the small family business to work as an actuary for a big, multinational corporation , since they wanted him to do lots of traveling.
Meaning of Multinational corporation (MNC) & Multinational corporation (MNC) Definition