How do multinational corporations differ from other international businesses?

Multinational corporations are defined by their significant presence across multiple countries, often involving the establishment of manufacturing facilities or operational branches abroad. This international footprint allows them to leverage local resources, access new markets, and optimize production costs in a way that other international businesses may not. While some international businesses might simply engage in exporting products or focus solely on digital sales, multinational corporations take on a more integrated approach by investing in and operating within the economies of other countries.

This operational model enables them to adapt to local market conditions, build relationships with local suppliers, and respond more effectively to consumer preferences. Additionally, their size and scale often afford them advantages in supply chain management and economies of scale, which can further enhance their competitive positioning globally.

Therefore, the defining characteristic of multinational corporations is their investment in manufacturing and operational presence in multiple countries, distinguishing them from other international business models that may not engage as deeply in local market integration.