Most large MNCs have growth strategies, and that is a major reason they are global MNCs. A company that wants to grow has three major options. These growth strategies are concentration, integration, and diversification. With a concentration strategy, the organization grows aggressively in its existing line(s) of business.

Companies can also pursue a common MNC growth strategy by means of mergers and acquisitions, commonly referred to as M&As. A merger occurs when two companies form one corporation. The new company name is often a combination of the merged businesses. An acquisition occurs when one business buys all or part of another business. One business becomes a part of an existing business.

The terms merger and acquisition are commonly used interchangeably. However, with a true merger, owners of stock in each company get shares of the new firm.