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Multinational Corporations

Definition

Multinational corporations are large companies that operate in multiple countries and have production, sales, and marketing activities spread across the globe. They often have headquarters in one country and subsidiaries or branches in others.

Analogy

Think of multinational corporations as global franchises like McDonald's or Starbucks. Just like how these fast-food chains have stores all over the world, multinational corporations have business operations in different countries.

Related terms

Globalization: The process of increased interconnectedness and integration of economies, cultures, and societies worldwide.

Foreign Direct Investment (FDI): When a company from one country invests directly into another country by establishing operations or acquiring assets.

Transnationalism: The idea that people and ideas are not confined to national boundaries but instead connect across borders.