What defines a multinational corporation (MNC)?

A multinational corporation (MNC) is characterized by its operations across multiple countries. This definition encompasses the management of production, services, and business activities in different national markets, reflecting the complexity and scale of global business operations.

MNCs leverage their international presence to optimize resources, access new markets, and enhance their competitive advantage. By managing facilities, workforce, and supply chains in various countries, they can respond flexibly to local market demands while integrating global strategies.

In contrast, a company that operates only in one country would not meet the criteria to be classified as a multinational corporation. Similarly, companies that limit their function to exporting or importing goods are not inherently multinational, as these actions do not involve establishing operations or a direct presence in foreign markets, which is a core aspect of what defines an MNC.