Multinational Corporations
Definition
Multinational corporations are large companies that operate in several countries around the world. They have offices or production facilities in multiple nations and conduct business on a global scale.
Analogy
Imagine if your favorite fast-food chain was like McDonald’s - you can find it almost anywhere you go around the world. That’s what multinational corporations are like; they’re businesses that have spread their operations across borders.
Related terms
Globalization: The process by which businesses or other organizations develop international influence or start operating on an international scale.
Foreign Direct Investment (FDI): An investment made by a firm or individual in one country into business interests located in another country.
Transnational Corporation (TNC): A corporation that has its operations in more than one country, not just where its headquarters are located.
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