Multinationals are companies that have their headquarters in one country but operate and live according to the laws and customs of other countries. Multinational corporations are giant companies headquartered in one country and with a variety of business operations in several other countries. The offices/branches/branches of multinationals work like a domestic company in each country they operate in with district policies and strategies suited to the country (market) concerned. They are duopolistic in nature. Sometimes their operations extend beyond the borders of the nation in which they originally began; they also act as transnational corporations. Profit is like the blood of businesses. When domestic markets do not promise high profits, companies look for foreign markets. If some domestic companies expanded their production more proportionally to demand, they would be forced to sell excess production to 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 that want to become multinational because once competition starts in domestic markets, the week companies that are unable to face competition start entering international markets. Many governments provide a variety of incentives and other supports to domestic companies such as tariff rates, lower export duties, etc. to invest in foreign markets. Monopoly power can be achieved through resources, technological advances, product differentiation, and unique market information that provide a proactive stimulus. Most countries today have liberalized their economies and opened up to the rest of the world. These policy changes have pushed multinationals to extend operations to…middle of the paper…where they are, are, and will continue to grow. Works Cited Blue Maumau. 2004. Which Companies 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 29 March 2011]Evans, R, 2005. Report on a turnkey project for Apple's iPod in Nigeria. Journal of Project Management, 1, pp. 2-8Neeraj, S, 2008. BBM Semester Scanner. 4th ed. Bangalore: Ujjwala P.Needle,D. 2004. Globulation. In: Paoli,L. and Cooke, A. Business in Context. 5th ed. Hampshire: Rennie, T. pp.20-46.Reuters. T. 2009. Global M&A Rankings. [ONLINE] Available at: http://www.reuters.com/article/2009/06/26/deals-graphics-idUSLQ68670820090626. [Accessed March 28 2011].