A firm conducting business in more than one country, through branches or subsidiary companies. Many large firms are multinationals, and a considerable proportion of international trade is between multinationals and their own foreign branches or subsidiaries. While multinational operation presents some legal and organizational problems, many firms find it worthwhile. It brings them closer to suppliers and markets, they can take advantage of international differences in resources and costs, the benefits of research and development can be spread over wider markets, and it gives a wider spread of risks. Multinational operation also improves their bargaining position in negotiating with national suppliers, governments, and trade unions.