unctad.org | Structure of TNCs
Structure of TNCs

A TNC is an enterprise, which is irrespective of its country of origin and its ownership, including private, public or mixed, which comprises entities located in two or more countries which are linked, by ownership or otherwise, such that one or more of them may be able to exercise significant influence over the activities of others and, in particular, to share knowledge, resources and responsibilities with the others. TNCs operate under a system of decision making which permits coherent policies and a common strategy through one or more decision-making centres. This definition does not regard the legal form and fields of activity of these entities.

In the above definition, the term "entities" refers to both parent enterprises, defined below, and other enterprises.

For working purposes, the UNCTAD considers a "transnational corporation" to be an entity controlling assets abroad.


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