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.
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