What defines a multinational corporation?

A multinational corporation is defined by its operation across multiple countries, encompassing manufacturing, marketing, and conducting business activities worldwide. This means that such corporations have production or service facilities in more than one country and typically engage with a global market. They adapt their strategies to meet the diverse needs of different regions, which can include localizing products and services, employing local workforces, and navigating various regulatory environments.

The focus on international operations is what distinguishes multinational corporations from businesses that operate solely within their home country or those that concentrate only on the domestic market and do not expand beyond national borders. Similarly, the definition excludes entities that engage only in exporting goods without establishing a significant presence or operations in other countries, as these do not typically demonstrate the strategic and operational complexities of a true multinational corporation.