A Multinational Corporation is a business unit which operates simultaneously in different part of world either by manufacturing or marketing or both by keeping its headquarter elsewhere as a strategic nerve centre.
Although MNC took birth in the early 1860s, it was after the Second World War that the Multinationals have grown rapidly.
Generally, an MNC meets five criteria.
- It operates in many countries at different levels of economic development.
- Its local subsidiaries are managed by nationals.
- It maintains complete industrial organizations including R & D and manufacturing facilities, in several countries.
- It has direct investment base in different countries.
- It derives from 20 % to 50 % or more of its net profits from foreign operations.
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