Definition of 'Multinational Corporation - MNC' A corporation that has its facilities and other assets in at least one country

other than its home country. Such companies have offices and/or factories in different countries and usually have a centralized head office where they co-ordinate global management. Very large multinationals have budgets that exceed those of many small countries. Definition An enterprise operating in several countries but managed from one (home) country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation. There are four categories of multinational corporations: (1) a multinational, decentralized corporation with strong home country presence, (2) a global, centralized corporation that acquires cost advantage through centralized production wherever cheaper resources are available, (3) an international company that builds on the parent corporation's technology or R&D, or (4) a transnational enterprise that combines the previous three approaches. According to UN data, some 35,000 companies have direct investment in foreign countries, and the largest 100 of them control about 40 percent of world trade.

Multinational Corporation A corporation that maintains assets and/or operations in more than one country. A multinational corporation often has a long supply chain that may, for example, require the acquisition of raw materials in one country, a product's manufacture in a second country, and its retail sale in a third country. A multinational often globally manages its operations from a main office in its home country. Multinational corporations are controversial among groups such as environmentalists and worker advocates, who claim that multinationals exploit resources and employees. On the other hand, proponents argue that multinationals createwealth in every country where they operate, which ultimately benefits workers as well asshareholders. The Importance of MNC'S Multinational corporations are companies with their home base in one country and operations in many other nations. Most of these, very immense firms, establish in third world countries or developing countries where they manufacture the same identical product for very low costs compared to the ones in developed countries. One of the purposes of MNC's is to create an economic development which is described as sustained growth in income per capita over a period of time, which usually involves a structural and institutional change in an economy. In addition, MNC's goals are the reduction of relative and absolute poverty, the increase of employment and the improvement of social welfare. Therefore, it leads to a higher standard of life to all. Determining the positions (in favor or against) of nation-states towards MNC's is a bit complicated and not always logical. Generally speaking, developed countries usually favor MNC's as they allow

firms to make more profit with cheaper labor. With developing countries the stance is not usually very clear, they will favor this in order to boost the economy and infrastructure. Thus, delegates must consider many complex economic factors that would help explain whether it is in their favor to support or oppose multinational corporations or not. Also delegates have to take into account whether that particular developing nation has comparative advantage or not. There are many different issues connected to corporations. In fact, we need to look at what is occurring with them and see if these corporations are causing more problems or are helping to solve problems of the world. Multinational Corporations can manipulate governments and in absence of global governance increasingly gain the control of the world economy. They seem to be profitmotivated and are engaging in destructive competition and insidious plots to economically and politically manipulate entire economies.