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The Politics of International Economic Relations, 5th Edition by Joan Edelman Spero, Jeffrey A. Hart

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The Multinational Corporation and the Issue of Management

 

A multinational corporation (MNC)1 is “an enterprise that engages in foreign direct investment (FDI) and that owns or controls value-added activities in more than one country.”2 A firm is not really multinational if it just engages in overseas trade or serves as a contractor to foreign firms. There are a number of ways of assessing the degree of multinationality of a specific firm. For example, firms are considered to be more multinational if (1) they have many foreign affiliates or subsidiaries in foreign countries; (2) they operate in a wide variety of countries around the globe; (3) the proportion of assets, revenues, or profits accounted for by overseas operations relative ...

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