Question

Differentiate between multinational corporations and domestic companies

Answer 1

Answer:

Multinational corporations operate in two or more countries while domestic companies restrict their operations to a single country. The reasons companies expand to other countries vary. Some companies do it to seek new markets, others to find resources, yet others to reduce costs.

A multinational corporation, or MNC, is a company which produces goods and services and has offices in several other countries while a global corporation or company is a company which also has trade relations with several other countries. 2. MNCs usually pay local workers a lower salary rate than global companies.

Answer 2

Answer:

While domestic businesses are only allowed to operate in one country, multinational corporations can operate in two or more.

Explanation:

There are many reasons why businesses grow internationally. Some businesses employ it to look for new markets, while others do it to locate resources or cut expenses. A multinational or international corporation is a business that produces goods or provides services across borders. A global corporation or firm is a company that also has trade links with numerous other countries, as opposed to a multinational corporation, or MNC, which produces goods and services and maintains offices in several other countries.

Any corporation that is registered and conducts business in more than one nation at once is referred to as a multinational corporation (MNC), sometimes known as a transnational corporation.

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