Chapter 1
Chapter 1
References:
1.Jeff Madhura.
Define Multinational Corporation
Multinational corporations (MNCs) are defined as
firms that engage in some form of international
business. Their managers conduct international
financial management, which involves international
investing and financing decisions that are intended to
maximize the value of the MNC. The goal of these
managers is to maximize their firm’s value, which is
the same goal pursued by managers employed by
A multinational corporation (MNC) or transnational
corporation (TNC) is a company engaged in producing and
selling goods or services in more than one country. It
ordinarily consists of a parent company located in the home
country and a number of foreign subsidiaries, typically with
a high degree of strategic interaction among the units. The
United Nations Conference on Trade and Development
(UNCTAD) defines such a firm as: “…an enterprise
comprising entities in more than one country which operate
under a system of decision-making that permits coherent
policies and a common strategy.”
Some MNCs have upward of 100 foreign subsidiaries
scattered around the world. The United Nations
estimated in 2012 that over 82,000 parent
companies around the world (with over 800,000
foreign subsidiaries employing 72 million workers)
can be classified as multinational firms.
How Business Disciplines Are Used to Manage the MNC