multinational corporation (MNC)



An enterprise operating in several countries but managed from one (home) country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation.

There are four categories of multinational corporations: (1) a multinational, decentralized corporation with strong home country presence, (2) a global, centralized corporation that acquires cost advantage through centralized production wherever cheaper resources are available, (3) an international company that builds on the parent corporation's technology or R&D, or (4) a transnational enterprise that combines the previous three approaches.

According to UN data, some 35,000 companies have direct investment in foreign countries, and the largest 100 of them control about 40 percent of world trade.

Use this term in a sentence

  • If you want your product to grow you can turn your business into a multinational corporation to find many new customers.

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  • If you want your product to grow you can make it a multinational corporation to open up many opportunities for you.

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  • It was a big step up for Jim when he left the small family business to work as an actuary for a big, multinational corporation, since they wanted him to do lots of traveling.

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