Multinational Company

Posted in Finance, Accounting and Economics Terms, Total Reads: 1449

Definition: Multinational Company

A multinational company is one that has its assets and resources in one or more countries other than its home country. These multinational companies operate in multiple geographies with their sales, production and procurement in multiple companies. A multinational company has its offices and employees spread over the globe to maximize revenue and minimize costs. The other names that can be used synonymously to refer to a multinational company are stateless corporation, transnational corporation, International Corporation.

A multinational company produces or sells goods in multiple countries. Multinational companies can create new jobs, bring new technology and wealth prosperity in the small countries where they operate and that are in need of such development. On the other hand, multinational corporations can have a undue influence on the governments and influence policy making, a term which is commonly known as industrial lobbying. Sometimes, due to increasing costs these companies shift their production base to low development countries, thereby causing job losses in their home country.

These companies generally have their R&D centers in major countries, production facilities spread across globe for cost cutting and efficient supply chain and sales and marketing team in almost all countries. Some examples of multinational companies are Shell, Coca-Cola, Amazon etc.


Hence, this concludes the definition of Multinational Company along with its overview.


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