A multinational corporation (MNC) is a company that has business operations in at least one country other than its home country. Some key characteristics of MNCs include:

• Global Presence: MNCs operate in multiple countries around the world, with assets or facilities in different locations.

• Economies of Scale: Due to their large size, MNCs can take advantage of economies of scale and grow their global brand. They can do this through strategic manufacturing/service placement, which allows the corporation to take advantage of undervalued services across the globe, more efficient and inexpensive supply chains, and advanced technological/R&D capacity.

• Legal Complexity: MNCs face increased legal complexity due to operating in multiple jurisdictions. Different countries have different laws around corporate structure, torts, contracts, the environment, and employment, to name a few. The MNC requires a local legal presence to help navigate these complexities.

• Taxation Regimes: MNCs encounter different taxation regimes by operating in many different countries. There may be different rules around sales or value-added tax, tax deductions (e.g., depreciation), the ability to use net operating losses to offset future taxable income, not to mention different tax rates.

• Political Instability: MNCs may experience political instability depending on where the MNC has offices and resources. Most MNCs have politically stable and economically developed home countries but operate in less developed countries. Sometimes the less developed country will experience political turmoil, including local ... .

MNCs can have a positive economic effect on the countries in which they operate, as they can generate employment, contribute to the local economy, and bring in new technologies and expertise. However, some believe outsourcing U.S. manufacturing to a foreign country has a negative effect on the U.S. economy. Investing in an MNC is a way to add international exposure to a portfolio.