This document defines and compares multinational companies (MNCs) and transnational companies (TNCs). MNCs have headquarters in one country and branches in other countries, called host countries. TNCs are a type of MNC that have subsidiaries in foreign countries and consider themselves borderless. The document outlines advantages and disadvantages of MNCs/TNCs for host and home countries. Key advantages for host countries include increased investment, employment, technology transfer, and economic development. Key disadvantages include potential threats to economic sovereignty and depletion of natural resources. India attracts MNCs due to its large market size and growing economy as well as government policies liberalizing foreign direct investment.