Global Business Strategy

Some definitions of ‘Multinational Corporation - MNC’ are as follows:

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.

A multinational corporation or multinational enterprise is an organization that owns or controls production of goods or services in one or more countries other than their home country. It can also be referred as an international corporation, a "transnational corporation", or a stateless corporation.

Multinational corporations take many different forms and engage in many different activities:

• Importing and exporting goods and services

• Making significant investments in a foreign country

• Buying and selling licenses in foreign markets

• Engaging in contract manufacturing—permitting a local manufacturer in a foreign country to produce their products

• Opening manufacturing facilities or assembly operations in foreign countries

A transnational corporation differs from a traditional multinational corporation in that it does not identify itself with one national home. While traditional multinational corporations are national companies with foreign subsidiaries, transnational corporations spread out their operations in many countries to sustain high levels of local responsiveness.

An example of a transnational corporation is Nestlé who employ senior executives from many countries and try to make decisions from a global perspective rather than from one centralized headquarters.

An enterprise is 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.

Criticisms of...