What is a multinational corporation? Why do firmsexpand into other countries?

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
Problem 12DQ: What it a foreign trade zone, and what advantages does it offer U.S. companies?
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What is a multinational corporation? Why do firms
expand into other countries?

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Step 1

A multinational corporation (MNC) is an organization which is having business units and assets in at in at least one country other than its home country.

Step 2

The companieswill have offices and/or manufacturing units in different countries.These companies’ results in having the centralized head office where they have coordinate global management. Generally Multinational Corporation manages their business through their Centralized office located in their country and having branch and regional office in respective countries as per their business requirements.

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