Corporate governance in a multinational corporation (MNC) consists of two tiers: parent-level governance and subsidiary-level governance. At the parent level, governance determines how responsibilities and oversight are divided. At the subsidiary level, foreign subsidiaries have their own boards to integrate with the parent company while answering to local stakeholders. Subsidiary governance structures can vary depending on whether the subsidiary is publicly listed or established privately to meet legal/strategic needs of the parent. Effective corporate governance in MNCs coordinates strategy globally through balancing integration and local responsiveness.