What is multinational corporation?

A multinational corporation (MNC) is a large corporation that operates in several countries. It has its headquarters in one country and has subsidiary companies operating in many different countries. These corporations are primarily engaged in different business activities like manufacturing and sales of products, providing services, and others.

MNCs are often characterized by their global reach, large size, and significant influence in the global economy. They have extensive resources and use them to take advantage of opportunities across different markets. MNCs play a crucial role in both international trade and global economic development.

Some of the common characteristics of MNCs are centralized management, coordinated strategies, and standardization of core operations across all subsidiary companies. They use advanced technology to manage their complex supply chains, streamline their operations, and optimize their use of resources.

MNCs have significant economic impact, providing employment, generating revenue, and contributing to the growth of the economies where they operate. They are also subject to regulations and scrutiny from governments and international bodies. Their operations are often controversial because of concerns regarding labor practices, environmental impact, and other social responsibilities.