Question

What is meant by a multi-national company?

What is a multinational company?

Answer 1

A Multi-National Company (MNC) is a huge industrial organization which:

1. Operates in more than one country.
2. Carries out production, marketing, and research activities on an international Scale in those countries.
3. Seeks to maximize profits the world over.
   Examples: Micro Soft Corporation, Nokia Corporation, Nestle, Coca – Cola, International Business Machine, Pepsico, Sony Corporation.

Answer 2

The term ‘multinational’ consists of two different words, ‘multi’ and ‘national’. The prefix ‘multi’ here means many, while the word ‘national’ refers to nations or countries. Therefore, a multinational company may be defined as a company that has business operations in several countries. Such a company has factories, branches, or offices in more than one country. According to the United Nations Commission on Multinational Corporations (MNCs), a multinational corporation is a corporation which operates, in addition to the country in which it is incorporated, in one or more other countries.