Multinational corporation

A multinational company (MNC)[lower-alpha 1][1] is a corporate organization that owns and controls the production of goods or services in at least one country other than its home country.[2][3] Control is considered an important aspect of an MNC, to distinguish it from international portfolio investment organizations, such as some international mutual funds that invest in corporations abroad simply to diversify financial risks. Black's Law Dictionary suggests that a company or group should be considered a multinational corporation if it derives 25% or more of its revenue from out-of-home-country operations.[4] A multinational corporation can also be referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation, or a stateless corporation.[5] There are subtle but real differences between these terms.

Most of the largest and most influential companies of the modern age are publicly traded multinational corporations, including Forbes Global 2000 companies. Multinational corporations are subject to some controversy for lacking ethical standards. They have also become associated with tax and base erosion and profit-shifting tax avoidance activities.


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