Multinational Pooling

DEFINITION of 'Multinational Pooling'

A method global companies use to manage the risk of their employee benefit plans throughout the world. The different employee benefit programs of a mulinational company are combined to form an international pool. The result of multinational pooling is financial savings and better control of the risks.

BREAKING DOWN 'Multinational Pooling'

There are two types of multinational pooling: company-specific and multi-client. Company-specific pooling is used by multinationals with international clients who are large enough to do the pooling on their own. Multi-client pools are available for companies who are less global but can none the less save costs by joining forces with other companies.

The merits of multinational pooling include:
- Economies of scale and purchasing power
- Global experience rating
- Financial cost savings
- Improved underwriting terms and conditions
- Annual reporting
- Management tool and information base

RELATED TERMS
  1. Option Pool

    Shares of stock reserved for employees of a private company. ...
  2. Commodity Pool

    A private investment structure that combines investor contributions ...
  3. Whole Pool

    In the mortgage-backed securities market, whole pools refer to ...
  4. MBS Pool Number

    A number or alphanumeric character assigned to a mortgage-backed ...
  5. Jumbo Pool

    A pass-through Ginnie Mae II mortgage-backed security that is ...
  6. Pooled Funds

    Funds from many individual investors that are aggregated for ...
Related Articles
  1. Home & Auto

    Swimming Pools: Costs Vs. Long-Term Value

    Consider the costs of installing and maintaining a swimming pool, and compare this with the pool's utility and the market value it adds to your home.
  2. Investing

    Should You Wade Into The Dark Pools Of Liquidity?

    Dark pools of liquidity allow big investors to trade away from the public eye. They limit market impact but may leave small investors in the cold.
  3. Investing Basics

    Pooled Funds Minimize Risk and Reward

    Pooled funds combine money from many individuals to invest in vehicles like a mutual fund or a pension fund.
  4. Investing

    Net Asset Value

    Discover how mutual fund companies and ETFs price shares of their investment pools.
  5. Investing Basics

    An Introduction To Dark Pools

    Dark pools are private exchanges for trading large chunks of securities that are not accessible to the public.
  6. Professionals

    Pooled Income Funds

    Pooled Income Funds
  7. Investing

    What's a Multinational Corporation?

    A multinational corporation is just that – a corporation that operates in multiple nations, with a home office that coordinates global management. Being a multinational corporation is a complicated ...
  8. Insurance

    Futures Fundamentals: How To Trade

    At the risk of repeating ourselves, it's important to note that futures trading is not for everyone. You can invest in the futures market in a number of different ways, but before taking the ...
  9. Options & Futures

    How U.S. Firms Benefit When The Dollar Falls

    When the greenback is weak, smart investors will invest in multinational companies to benefit.
  10. Home & Auto

    2. A Swimming Pool

    Find out which home improvements fail to entice buyers and increase your home's value.
RELATED FAQS
  1. How many nations must a company trade in to be considered a multinational corporation?

    Learn about the conditions a company has to meet to be considered multinational, and find out when investing in multinational ... Read Answer >>
  2. Are all multinational corporations also large cap companies?

    Learn about the differences between multinational corporations and large-cap companies, and discover the most important features ... Read Answer >>
  3. How many multinational corporations operate in China?

    Discover the importance of emerging multinational corporations. As China's urban population grows, it will continue to be ... Read Answer >>
  4. What multinational corporations operate in the former Soviet Union?

    Learn about the sectors in which multinationals operate in the former Soviet Union, and find out which features attract them ... Read Answer >>
  5. What is political risk and what can a multinational company do to minimize exposure?

    For multinational companies, political risk refers to the risk that a host country will make political decisions that will ... Read Answer >>
  6. How can an individual investor get involved in FDIs (foreign direct investments) ...

    Learn about what economists call foreign direct investment, and find out why individual investors may find it difficult to ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center