A multinational corporation (MNC),(sometimes referred to as a Transnational corporation(TNC)) is a corporation that has its facilities and manages production or delivers services in at least two countries. Very large multinationals have budgets that exceed those of many small countries. MNC can have a powerful influence in international relations and local economies.
The world's 20 Largest MNC By Market Value, 2007 ($ US Milions)
MNC can be divided into different groups. The 3 broad groups are:
Horizontally integrated multinational corporations manage production establishments located in different countries to produce the same or similar products. (example: McDonald's)
Vertically integrated multinational corporations manage production establishments in certain country/countries to produce products that serve as input to its production establishments in other country/countries. (example: Adidas)
Diversified multinational corporations manage production establishments located in different countries that are neither horizontal nor vertical nor straight, nor non-straight integrated. (example: Microsoft)
It also plays an important role in globalization. Countries compete against each other in order to estabilish MNC services, employment, economic activity and the subsequent tax revenue. To compete, countries offer incentives to MNCs such as tax breaks, pledges of governmental assistance, or lax environmental and labor standards.
A multinational corporation (MNC),(sometimes referred to as a Transnational corporation(TNC)) is a corporation that has its facilities and manages production or delivers services in at least two countries. Very large multinationals have budgets that exceed those of many small countries. MNC can have a powerful influence in international relations and local economies.
The world's 20 Largest MNC By Market Value, 2007 ($ US Milions)
MNC can be divided into different groups. The 3 broad groups are:
It also plays an important role in globalization. Countries compete against each other in order to estabilish MNC services, employment, economic activity and the subsequent tax revenue. To compete, countries offer incentives to MNCs such as tax breaks, pledges of governmental assistance, or lax environmental and labor standards.