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Various Aspects of a Multinational Corporation:

A multinational corporation can basically be defined as a corporation that has its operations in more than one country or is registered in more than a single country. However, the accurate definition of a multinational corporation is usually difficult to determine. In most cases, such corporations are large in size and involved in the production and sale of products and/or services in several countries. As a result of their operations or registered in more than a single country, multinational corporations can also be described as an international corporation. These corporations usually play a significant role in globalization because of the nature or extent of their operations. An example of a multinational corporation is McDonalds Corporation, which is the leading food service retailer across the globe with over 34,000 restaurants. The company serves more than 68 million customers on a daily basis in more than 115 countries worldwide. McDonalds is regarded as a multinational corporation because it serves a huge customer base in more than 100 countries in the fast food service industry.

Background Information about McDonalds Corporation:

McDonalds Corporation is a company whose history can be traced back to 1954 when it was founded by Raymond Kroc who envisioned a huge new industry. Kroc proved to be an industrial pioneer with similar abilities to Henry Ford because of the way he transformed the restaurant industry in the United States. The transformation of the country’s restaurant industry through the development of McDonalds occurred when Kroc imposed discipline in the production of French fries, hamburgers, and milk shakes (“Ray Kroc, McDonalds, and The Fast-Food Indus...

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...ed markets with the potential of developing a huge customer base for the firm. However, these markets also present high political risks for the corporation because they are relatively faced with political instability. The high political tensions and uncertainties make it difficult for a company to operate effectively in such markets.

Some political risks for this corporation also occur in established markets such as China, which has traditionally been a favored destination for multinational corporations. However, operating in the Chinese market carries political risks for the company, particularly when there is a diplomatic row between China and the firm’s parent nation. The political risk in the world’s largest national market is brought by the government’s attempts to develop Chinese domestic economy through shifting from export-based model (Lindorff, 2012).