The Full Form of MNE is Multinational Enterprise.

Multinational enterprises are more complicated than businesses that remain in their home country.First, the businesses transfer resources, such as machines, equipment, and labor between different countries.Next, they ship products and services to other countries.Consequently, companies need excellent management in logistics, and specialists who monitors a country’s different laws and regulations.Second, international enterprises are exposed to exchange rate risks and credit risks.Thus, a company’s profit can quickly change due to fluctuations in currency exchange rates, or a company cannot get credit to finance operations in a specific country.Finally, enterprises have other exposures, such as country risk.For example, when Hugo Chavez became president of Venezuela, his government began nationalizing companies.Any international enterprise in Venezuela can experience the seizure of its assetswithout compensation.

• A multinational corporation is a company incorporates itself in one country and operates in one or more foreign countries.For example, British Petroleum, General Electric, Toshiba, and Wal-Mart are multinational corporations with extensive business activities that span across the globe.Sometimes financial analysts use the term, multinational enterprise because a government could form a joint venture with a corporation, and the definition of an enterprise implies a broader meaning.
• A multinational enterprise’s goal is to earn profits.Therefore, they enter the international markets and foreign countries in the pursuit of profits.Every international enterprise has a choice.It could export to another country or relocate production outside their home country.For instance, many U.S. corporations relocated manufacturing outside the United States, althoughthe U.S. suffers from a high unemployment rate since the beginning of the Great Recession.
• Thus, companies can develop new products and services, and compete with other companies.Furthermore, a multinational enterprise could tailor its goods and services toaccommodate different cultures and tastes.Finally, multinational corporations need access to capital because international activities require financing.Hence, a country must allow the free movement of money, and corporations are free to issue more stock, bonds, or receive bank loans without government interference.Consequently, a firm has twelve reasons to relocate production to another country, rather than to export.
• Reason 3: An enterprise that moves its factories to a foreign country automatically avoids trade restrictions, like tariffs and import quotas.Government does not apply trade restrictions to products and services produced within a country.
• Multinational enterprises are more complicated than businesses that remain in their home country.First, the businesses transfer resources, such as machines, equipment, and labor between different countries.Next, they ship products and services to other countries.Consequently, companies need excellent management in logistics, and specialists who monitors a country’s different laws and regulations.Second, international enterprises are exposed to exchange rate risks and credit risks.Thus, a company’s profit can quickly change due to fluctuations in currency exchange rates, or a company cannot get credit to finance operations in a specific country.Finally, enterprises have other exposures, such as country risk.For example, when Hugo Chavez became president of Venezuela, his government began nationalizing companies.Any international enterprise in Venezuela can experience the seizure of its assetswithout compensation.