Multinational corporation

A multinational corporation (MNC) or multinational enterprise (MNE) or transnational corporation (TNC) is one that spans multiple nations; these corporations are often very large. Such companies have offices, factories or branch plants in different countries. They usually have a centralised head office where they coordinate global management.

Related Topics:
Corporation - Branch plants - Management

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Very large multinationals have budgets that exceed those of many countries. They can have a powerful influence in global politics, given their large economic influence in politicians' representative districts, as well as their extensive financial resources available for public relations and political lobbying. Given their international reach and mobility, regions within countries, and countries themselves, must compete with others for MNCs to locate their facilities (and subsequent tax revenue, employment, and economic activity) there. To compete, countries and regional political districts often offer incentives to MNCs, such as tax breaks, pledges of governmental assistance or improved infrastructure, or lax environmental and labor standards.

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Multinationals often make use of subcontractors to produce certain goods for them.

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The first multinational, appearing in 1602, was the Dutch East India Company.

Related Topics:
1602 - Dutch East India Company

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