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. Institutional Investor Index

    A measure of sovereign debt risk that is published biannually ...
  2. Developed Economy

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

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

    A complex provision defined in section 954(c)(6) of the U.S. ...
  5. Commercial Policy

    The regulations and policies that determine how a country conducts ...
  6. Earnings Stripping

    Earnings Stripping is a commonly-used tactic by multinationals ...
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. 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.
  3. 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....
  4. Economics

    Could Third World Debt Relief Pay Off?

    Debt is as much a political tool as an economic one. Discover if wholesale debt forgiveness is the answer for developing countries.
  5. Forex

    Main Factors That Influence Exchange Rates

    The exchange rate is one of the most important determinants of a country's relative level of economic health, and can impact your returns.
  6. Economics

    What does Current Account mean?

    The current account reflects the difference between a country’s savings and investments.
  7. Personal Finance

    What Is International Trade?

    Everyone's talking about globalization, so we explain what is it and why some oppose it.
  8. Economics

    EU Probes Tax Laws To Catch Corporate Cheaters

    Recently, the EU has launched an investigation into tax deals between Amazon and the country of Luxembourg.
  9. Investing News

    Nobel Energy Uses Foreign Tax Credit to Bring Profit Home (NBL)

    Noble Energy's (NBL) earnings yesterday followed the script of most major energy companies in that the company reported losses due a decline in energy prices. The Houston, Texas-based company ...
  10. Forex Fundamentals

    6 Factors That Influence Exchange Rates

    An in depth look at out how a currency's relative value reflects a country's economic health and impacts your investment returns.
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 economic indicators are most used when forecasting an exchange rate?

    Discover what economic indicators are most widely used to forecast a country’s exchange rate and how various factors influence ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center