An investment made by a company or entity based in one country ,into a company or entity based in another country
includes mergers and acquisitions (take over) ,build new facilities ,reinvesting profits earned from overseas operations
Advantages
Parent company maintains complete control over its technology or expertise
Foreign subsidiary is run as an independent entity
Disadvantages
The legal requirements of both the parent and foreign countries must be observed (comply obey)
Parent company must commit (make an investment) funds and technology within foreign boundaries
Multinational Corporations
A company that multinational and markets products in many different countries and has multinational stock ownership and management