A multinational corporation (MNC) is a business organization with operations located in more than two countries and is the organizational form that defines investment foreign direct, the form of which consists of the location of the country where the company is incorporated and the establishment of branches or subsidiaries in foreign countries (Kogut, 2001; Shah, FA, Yusaf, DM, Hussain, A. and Hussain , J., 2012); or it can simplify by saying that if cheap production costs are located in other countries, multinationals will locate their operations there to take advantage of the material resources (Bennett, 2002). There are few alternative entry strategies for multinationals in the foreign market, which can be divided into two categories: domestic production and foreign production. For domestic production, the company's production process is carried out in the home country and then exported directly or indirectly to the foreign country. Meanwhile, the foreign production strategy includes assembly, contact manufacturing, licensing and franchising, joint ventures and 100 percent ownership. Multinational companies can carry out their business activities and operations depending on the number of countries in which they operate. They can operate in 100 countries, with hundreds of thousands of employees located outside their home country (Kogut, 2001). The main concern is whether capital can flow from one country to another with the expectation of higher rates of return and which entry strategy is most suitable and optimal for the company's policy, to foreign culture and regulations. Licensing is a common entry strategy for entering a foreign market with a limited degree of risk. This is generally longer term and involves greater responsibilities for the local producer (Lambin, 2007). Licensing is similar to that of the franc...... middle of paper sales, and increased market power. However, the big problem is that the controlling power has been divided due to joint venture, which means two companies come together to develop a new business idea and environment. To solve this problem, the joint venture agreement is the optimal solution because it helps avoid control problems. In addition, the presence of a local company facilitates the integration of the international company in a foreign environment. (Lambin, 2007) In summary, MNCs can maximize their global profits in foreign markets through licensing or joint ventures. It must depend on how multinational policy works. If the management of multinationals does not want to commit to huge capital investments, they can turn to licensing. However, host country policy and regulation as well as inflation issues must also be taken into account when changing the organizational structure of the foreign market..