What are the main features of a multinational corporation?

A multinational corporation (MNC) is characterised by its large size, global reach, and operations in multiple countries.

A multinational corporation, often referred to as an MNC, is a large company that operates in more than one country. It is typically characterised by its significant size and scale, which allows it to have a substantial impact on both the global economy and the economies of the countries in which it operates.

One of the main features of an MNC is its global reach. This means that it has a presence in multiple countries around the world, either through direct operations, such as factories or offices, or through indirect operations, such as partnerships or franchises. This global reach allows the MNC to access a larger customer base, diversify its operations, and potentially achieve economies of scale.

Another key feature of an MNC is its ability to transfer resources and knowledge across borders. This includes not only physical resources, such as raw materials and products, but also intangible resources, such as technology, skills, and knowledge. This ability to transfer resources and knowledge can give the MNC a competitive advantage over companies that operate only in one country.

MNCs also typically have a complex organisational structure. This is necessary to manage their diverse operations and to coordinate activities across different countries. This structure often involves a central headquarters, which is usually located in the home country of the MNC, and various subsidiaries or branches in other countries. The central headquarters typically makes strategic decisions, while the subsidiaries or branches implement these decisions locally.

IB Business Management Tutor Summary: A multinational corporation (MNC) is a large business that operates across many countries. Its main features include a global presence, the ability to move resources and knowledge between countries, and a complex structure with a central HQ and branches worldwide. This enables MNCs to serve more customers, be more competitive, and have a big impact on global and local economies.