Multiantional Comapny

Topics: Multinational corporation, Corporation, Globalization Pages: 2 (510 words) Published: March 16, 2013
Multinational companies

A multinational company is a very large company, with subsidiaries, branch offices and factories operating in more than one country Definition
It is an enterprise operating in several countries but managed from one country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation Examples of multinational companies in Mauritius include kfc, Pizza hut, Orange, Emtel McDonalds, Ford, and Chevrolet. Advantages of multinationals

1. Multinational companies create opportunities for marketing the products produced in the home century throughout the world. 2. They create employment opportunities to the people of home country both at home and abroad. 3. It gives a boost to the industrial activities of home country. 4. Multinationals help to maintain favorable balance of payment of the home country in the long run 5. Home country can also get the benefit of foreign culture brought by multinationals. 6. Transfer of technology, capital and entrepreneurship.

7. They increase the investment level and thus the income and employment in the host country. 8. Greater availability of products for local consumers.
9. They provide an efficient means of integrating economics.

Reasons for multi-national companies to operate?
1. In more recent times, multinational companies have grown in power and visibility. They appear to influence as barriers to international trade. 2. Operating in a number of countries gives a company several advantages. One of these is that to achieve economies of scale and scope. The companies want to expand their customer base through economies of scale. The company can be cost effective and make more profits in this way. 3. The company would like to broaden its markets. Due to saturated home market, there will be the necessity for market development abroad. Multinational companies will seek new markets to fill product...
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