Cambridge O Level Business Studies · Syllabus 7115 · External Influences on Business Activity
Multinational Company (MNC)
What is Multinational Company (MNC)?
A business that owns or controls production, service or distribution operations in more than one country, rather than merely exporting to them. Businesses become multinational to reach new markets, to lower production or transport costs, to access labour, skills or raw materials, to operate inside trade barriers rather than pay them, to spread risk across economies, and to gain economies of scale. Whether a multinational benefits a host country depends on job quality, local sourcing, tax arrangements, regulation, reinvestment, technology transfer and external costs, not on multinational status itself.
This definition is part of the External Influences on Business Activity chapter in Cambridge O Level Business Studies.