What are the types of MNC’s?

TYPES OF MNCS: ‐ MAIN THREE TYPES OF MNCS ARE GIVEN BELOW: ‐

(a)  Transnational Corp.: ‐ Incorporated or Unincorporated enterprises comprising parent enterprises and their foreign affiliates.

(b)  Parent enterprise: ‐ controls assets of other entities in countries other than its home country, usually by  owning a certain equity capital state (usually 10% or more)

(c)   Foreign Affiliate: ‐ Is an incorporated or unincorporated enterprise in which an investor, who is resident  in  another economy, owns a stake that permits a lasting interest  in   the   management   of that  enterprise,  A  subsidiary,  associate,  and branches are all referred to as foreign affiliates.

1.                  Subsidiary:  ‐  Is  an  incorporated  enterprise  in  the  host  country  in  which another entity  directly  owns  more  than  half  of  the  shareholding  voting power and has the right to appoint  or   remove  a  majority  of  the  members  of  the  administrative,  management,  or supervisory body.

2.                  Associate: ‐ Is enterprise in the host country in which an investor owns at least 10%

but not more than half of the shareholders voting power.

3.   Branch: ‐ Is a wholly or jointly owned unincorporated enterprise in the host country.