What is a transnational corporation (TNC)?

A transnational corporation (TNC) is defined as a company that operates in multiple countries beyond its home nation. This means that a TNC has facilities, production, or services located in more than one country, and it often aims to maximize profits by taking advantage of lower costs in various regions, as well as accessing new markets for its goods and services.

TNCs are typically involved in international trade, benefiting from global supply chains, and can influence local economies, labor markets, and even governmental policies in the countries where they operate. By expanding their operations across borders, TNCs are able to leverage resources, talents, and innovations from different locations, enhancing their competitive edge in the global marketplace.

Other options do not match the definition: a corporation that operates only in one country would not qualify as a transnational, philanthropy is unrelated to the core function of a TNC, and a local small business typically operates within a limited geographic area, lacking the expansive international presence characteristic of transnational corporations.