Multinational Corporations

A Multinational Corporation is a business unit which operates simultaneously in different part of world either by manufacturing or marketing or both by keeping its headquarter elsewhere as a strategic nerve centre.

Although MNC took birth in the early 1860s, it was after the Second World War that the Multinationals have grown rapidly.

Generally, an MNC meets five criteria.

1. It operates in many countries at different levels of economic development.
2. Its local subsidiaries are managed by nationals.
3. It maintains complete industrial organizations including R & D and manufacturing facilities, in several countries.
4. It has direct investment base in different countries.
5. It derives from 20 % to 50 % or more of its net profits from foreign operations.