What are Multinational Corporation?

Multinational corporations, also known as transnational corporations, are those corporations which conduct business in more than one country, or those which deliver services to more than one country. In general, the company will only have headquarters in one county, but they conduct business in other countries.

Multinational corporations are important to the economy of the countries where the headquarters are located, as well as in the counties where they conduct business. However, that economic impact is not always positive, as a multinational corporation may take away business from smaller corporations which conduct business in that country. In either case, transnational corporations played and continue to play an important role in globalization and the relationships between differing countries which may rely on one another for certain types of business, including exporting and importing.

Some transnational corporations offer employment opportunities in countries that would otherwise have very few. In addition, a multinational corporation may also contribute to each local economy where business is conducted in a positive and beneficial manner. There are also issues of taxation which cross international borders with transnational corporations, allowing many countries to enjoy the tax benefits of that entity.

A transnational corporation can greatly influence the relationship between the countries where business is conducted. In fact, many multinational corporations enjoy tax breaks as an incentive to doing business in specific counties. That strengthening of relationships between counties also helps the economy in those countries, as well as has an influence over the global economy.

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