A Multinational Corporation (MNC) is different from other companies because it spreads its production and interacts with local producers in various countries across the globe. While other companies limit their operations to one country, MNCs set up factories and offices for production in different nations to benefit from lower costs and larger markets.

Another key difference is the scale of investment and influence. The money spent by MNCs to buy assets in other countries is called foreign investment. Furthermore, many top MNCs have enormous wealth exceeding the budgets of developing country governments. This allows them to exert a strong influence on production at distant locations and determine price, quality, and labour conditions for local producers.