Multinational corporations are companies that are headquartered in one country but also operate and live under the laws and customs of other countries. Multinationals are giant companies that are headquartered in one country and carry out various business activities in several other countries. The offices/branches/subsidiaries of multinationals operate as a national company in each country where they operate with district policies and strategies tailored to the country (market) concerned. They are duopoly in nature. Sometimes their operations extend beyond the borders of the nation in which they began; they also act as transnational corporations. “Profit is like the blood of business. When domestic markets do not promise high profits, companies seek foreign markets. If some domestic companies increase their production in proportion to demand, then they are forced to sell their excess production in foreign markets. Hindustan Machine Tools Ltd. took exports very seriously due to the recession in the home country in the late 1960s. Competition can become a driving force for companies to become multinationals, because once competition begins on domestic markets, the week when companies that are unable to respond to competition begin to enter international markets. Many governments offer a number of incentives and other supports to domestic companies, such as tariffs, reduced export duties, etc., to invest in foreign markets. Monopoly power can be achieved through resources, technological advancements, product differentiations, and proprietary market information that provide proactive stimulus. Most countries today have liberalized their economies and opened up to the rest of the world. These policy changes prompted multinational corporations to expand their operations middle of paper... were, they are and they will continue to grow. Works cited by Blue Maumau. 2004. Which businesses do well with franchising?. [ONLINE] Available at: http://www.bluemaumau.org/8188/what_businesses_go_well_franchising_part_1. [Accessed March 28, 2011]. Cohen R. 2009. International market entry. [ONLINE] Available at: http://www.njsbdc.com/international/itadv.php. [Accessed March 29, 2011] Evans, R, 2005. Apple iPod Turnkey Project Report in Nigeria. Journal of Project Management, 1, pp. 2-8Neeraj, S, 2008. BBM Semester Scanner. 4th ed. Bangalore: Ujjwala P. Needle, D. 2004. Globilation. In: Paoli, L. and Cooke, A. The business in context. 5th ed. Hampshire: Rennie, T. pp.20-46.Reuters. T. 2009. Global ranking of mergers and acquisitions. [ONLINE] Available at: http://www.reuters.com/article/2009/06/26/deals-graphics-idUSLQ68670820090626. [Accessed March 28 2011].