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What are multinational corporations (MNCs) and what economic roles do they play?
A multinational corporation (MNC) can be described as a business firm incorporated in one country which has production and sales operations in various other countries. Certainly, some MNCs have operations in dozens of diverse countries. MNCs acquire financing from major money centers around the world in several different currencies to finance their operations. Global operations force the treasurer's office to set up international banking relationships, to place short-term funds in various currency denominations, and to efficiently manage foreign exchange risk.
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