Multinational Corporation - MNC

Multinational Corporation - MNC

A corporation that has its facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralized head office where they coordinate global management. Very large multinationals have budgets that exceed those of many small countries. Sometimes referred to as "transnational corporation".

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Nearly all major multinational corporations are either American, Japanese or Western European, such as Nike, Coca-Cola, Wal-Mart, AOL, Toshiba, Honda and BMW. Advocates of multinationals say they create jobs and wealth and improve technology in countries that are in need of such development. On the other hand, critics say that multinationals can have undue political influence over governments, can exploit developing nations and can create a loss of jobs in their own home countries.

See also: Corporation, Depository Receipt, Globalization, North American Free Trade Agreement - NAFTA, Social Responsibility, World Trade Organization - WTO