Definition of MNCs



Jacques Maisonrouge, president of IBM world trade corporations  defines an MNC as a company that meets five criteria:

1)    It operates in many countries at different levels of economic developments.

2)    Nationals manage its local subsidiaries.

3)    It maintains complete industrial organizations, including R and d and manufacturing facilities in several countries.

4)    It has a multinational central management.

5)    It has multinational stock ownership.



James C. Baker also defines MNC’s as a company:

1)    Which has direct investment base in several countries.

2)    Which generally derives from 20% to 50% or more its net profits from foreign operations.

3)    Whose management makes policy decisions based on the alternatives available anywhere in the world.


A significant share of the world’s industrial investment, production, employment and trade are accounted for by these more than 65000 MNC’s with over 8,00,000 affiliates.

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