Multinational Corporation - MNC

Loading the player...

What is a 'Multinational Corporation - MNC'

A multinational corporation (MNC) is 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 co-ordinate global management. Very large multinationals have budgets that exceed those of many small countries.

Sometimes referred to as a "transnational corporation".

BREAKING DOWN 'Multinational Corporation - MNC'

Nearly all major multinationals 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 multinationals can have undue political influence over governments, can exploit developing nations as well as create job losses in their own home countries.

RELATED TERMS
  1. Green Field Investment

    A form of foreign direct investment where a parent company starts ...
  2. Institutional Investor Index

    A measure of sovereign debt risk that is published biannually ...
  3. Multinational Pooling

    A method global companies use to manage the risk of their employee ...
  4. Developed Economy

    While there is no one, set definition of a developed economy ...
  5. Debt Bomb

    This occurs when a major financial institution, such as a multinational ...
  6. Look Thru

    A complex provision defined in section 954(c)(6) of the U.S. ...
Related Articles
  1. 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 ...
  2. 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.
  3. Investing

    What is Globalization?

    As a business term, globalization refers to the tendency of international trade, investments, information technology and outsourced manufacturing to weave the economies of diverse countries together.
  4. Taxes

    You'd Be Rich If You Were Taxed Like a Multinational

    Oh, the money you'd save. Something to think about as you fill out your own taxes, which aren't getting a tax holiday from Uncle Sam anytime soon....
  5. Economics

    Understanding Green Field Investments

    A green field investment refers to a company, usually a large multi-national corporation, building a new facility in a foreign country.
  6. Options & Futures

    Evaluating Country Risk For International Investing

    Investing overseas begins with determining the risk of the country's investment climate.
  7. Forex Education

    Forex Tutorial: Economic Theories, Models, Feeds & Data

    There is a great deal of academic theory revolving around currencies. While often not applicable directly to day-to-day trading, it is helpful to understand the overarching ideas behind the ...
  8. Investing News

    Is Multinational Tax Avoidance at an End?

    Are governments doing enough to end corporate tax avoidance?
  9. Investing

    Inversions and Transfer Pricing Will Hurt the US Economy

    Corporate inversion, while it benefits large corporations, costs the U.S. economy billions of dollars in federal tax revenue. How does that affect you?
  10. Economics

    The Balance Of Trade

    The balance of trade is the difference between a country’s imports and exports. A trade deficit occurs when a country buys or imports more goods from other countries than it sells or exports. ...
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. 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 >>
  4. 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 >>
  5. 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 >>
  6. 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 >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. 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 ...
  5. Keynesian Economics

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

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center