Multinational Companies

Definition

Multinational companies are large corporations that operate in multiple countries, with headquarters in one country and branches or subsidiaries in others. They conduct business activities on a global scale.

Related terms

Globalization:

The process of increasing interconnectedness and interdependence among countries through the exchange of goods, services, information, and ideas.

Foreign Direct Investment (FDI):

When a company from one country invests in another country by establishing operations or acquiring assets.

Transnational Corporations: Similar to multinational companies, transnational corporations operate across national borders but may not have a clear home base or headquarters.