What Is a "multinational Corporation"?

multinational-corporation Credit: Ariel Skelley/Blend Images/Getty Images

A multinational corporation is a company that has an established presence in a country beside its home country. They generally have a headquarters in their home country that centralizes the management of their global facilities.

There are over 40,000 multinational corporations in operation. Due to their large size they are able to influence governments and global trade. They face both criticism and praise due to their ability to impact employment opportunities. As global competition has intensified they have moved jobs from their home countries to developing countries in order to achieve cost savings.

Some multinational corporations are larger than small countries. Almost all multinational corporations originate from the United States, Western Europe and Japan.