Corporation and Multinational Company

Only available on StudyMode
  • Download(s) : 665
  • Published : December 8, 2012
Open Document
Text Preview
POSSIBLE ADVANTAGES OF A MULTINATIONAL CORPORATION

A multinational corporation (MNC) is a corporation that is registered in more than one country or that has operations in more than one country. In other words, business enterprise with manufacturing, sales, or service subsidiaries in one or more foreign countries, also known as a transnational or international corporation. Multinational companies provide some advantages in itself. Now, I am going to explain the advantages of these companies.

First of all, multinational company have big market available in different countries. They have the necessary skill and expertise to sell their products at international level. Any company can enter into a joint venture with a foreign company to sell its products in the international market. It also mean that multinational companies are able to sell far more than other type of company. Entering new markets are always provide advantage of MNCs. In addition, they follow the market, determine the trends and also provide product range according to different kind of consumers. In addition, brand value is increased because people can find the same brand, the same products from the same quality.

Secondly, multinational companies can carry out a lot of research and development. By mean, the resources and experience of multinational companies in the field of research enable the host country to establish efficient research and development system. Moreover, this helps host country to produce quality products at least possible cost. On the other hand, these companies ensures optimum utilization of natural and other resources of the home country.

Furthermore, multinational companies filed for bankruptcy more difficult. Because, they are financially strong more than other small companies. They also have chance to dividend their operation activities. For example, in Iran, Unilever does not leave the market until their opponents...
tracking img