Transnational Corporation

• Author: Jeffrey Lehman, Shirelle Phelps

Page 80

Any corporation that is registered and operates in more than one country at a time; also called a multinational corporation.

A transnational, or multinational, corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in one or more other countries. The subsidiaries report to the central headquarters. The growth in the number and size of transnational corporations since the 1950s has generated controversy because of their economic and political power and the mobility and complexity of their operations. Some critics argue that transnational corporations exhibit no loyalty to the countries in which they are incorporated but act solely in their own best interests.

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