Final answer:
A Multinational Enterprise (MNE) or Multinational Corporation (MNC) is a company with operations in multiple countries, influencing global trade and politics. A Transnational Corporation operates internationally with a more global management approach, impacting policies in various countries. These entities have significant economic influence and ethical responsibilities regarding their global employees.
Step-by-step explanation:
Definition of Multinational and Transnational Corporations
A multinational enterprise (MNE), also known as a multinational corporation (MNC), is an entity with its headquarters in one country but operations in at least one other country. These corporations play a significant role in global affairs affecting trade, workers' rights, and environmental policies. Due to their economic impact and vast resources, they wield considerable influence over international and national policies.
A transnational corporation is similar to a MNC in that it operates across national borders. However, the term 'transnational' often emphasizes the diminishing importance of the home country and a more global approach to management and strategy. The activities of MNEs and transnational corporations have transformed the nature of international trade and investment, with decisions made by these corporations having significant implications on taxation, investment protection, immigration, and more.
Examples of MNCs include tech giants like Apple, and conglomerates such as Ford Motor Company, which operate under one name but produce various products globally. The presence of MNCs can contribute significantly to a country's GDP and business cycle, yet they are subject to differing laws, cultures, and economic conditions across the countries they operate in.
These multinational entities, such as the British East India Company historically, and modern corporations like Apple presently, often have assets that exceed the GDPs of smaller nations, giving them leverage to influence national policies. The ethical relationships between MNCs and their employees are also paramount, as these corporations gain more power within global markets.