Innovation essential in MNCs became crucial to maintain sustainability,competitiveness&market positioning to create profitable brand.corporate innovation requires definition of business core competency &empower champions to develop products aligned with market demand.corporation can seek different type of innovation trough sustainability innovation to develop products by focusing on targeted criteria and disrupt innovation through adaptation to new market conditioning &demand.Challenges could face corporations in innovation process starting from selection of profitable idea&value added to gain market share & social capital core capabilities of development&brainstorming to build products with less cost& understand cultural norms to target consumer demand& direct innovation &technological capabilities toward product development.There are positive indicators to measure relationship between the host Government &MNC, if the MNC is able to transfer capital, technology to boost growth,create jobs and integrate into global system.However there are strategies MNCs can use in market expansion to lessen political risks that might impact capital&decision making. Joint venture with local MNCs to add up bargaining power. include several investors& banks from the host country to mitigate prospect threats.Planned domestication is the most effective long range strategy where the host country demand local participation

MNCs are exposed to Government intervention that affects decision making style to become more decentralized ,affected by political attitude such as nationalism,animosity&trade disputes between countries that have a direct impact on product sourcing,profitability to gain competitive advantage.Political risk management can be integrated through rational hedging to lessen capital expropriation ,run discounted cash flow to measure the financial impact over the MNC&choose strategic partnership style to expand..However there are strategies MNCs can use in market expansion to lessen globalization risks that might impact capital&decision making. Joint venture with local MNCs to add up bargaining power. include several investors& banks from the host country to mitigate prospect threats.Planned domestication is the most effective long range strategy where the host country demand local participation.MNCs are the vehicle of peace&prosperity in the world., helping to develop cordial political relations among the countries.through economic integration.