Multinational Coorporations
RESEARCH PAPER
TOPIC : MULTI-NATIONAL CORPORATIONS
MULTINATIONAL CORPORATIONS
Multi-National Corporations can also be termed as Multi-National Companies or Multi-National Enterprises. A corporation or group of companies that has its operations of producing and selling its products in home and host countries is said to be an MNC. MNC has its production and sales in different countries based on their parent organization rules. The operations are registered in different regions based on the product and services offered by these corporations. A company that earns more than a quarter of its income from outside its home country is considered, multinational. MNC’s are four fold in formation. They are: 1 .A multinational, decentralized corporation with a strong home base. 2. A global centralized corporation. 3. An international company that grows and builds on the parent company’s technology 4. A transitional company that combines the three above, (e.g. Nestlé’s) GLOBALIZATION AND ITS RELATIONSHIP WITH MNCS The first word that strikes every mind when we learn or understand Multinational corporations is Globalization. The process of globalization, has led to significant changes in very sector and economy of the world. The new generation companies and industries follow globalization to approach different market strategies. The key process of globalization is analyzing and understanding the world , interchange of different world views and following standard code which is applicable uniformly. Globalization has direct effect on every business enterprises from Small- medium – large multinational companies. Globalization has brought with it a socio-economic upheaval which would have been unimaginable a few years ago. It has shrunk a world that was once huge and transcended its borders making the world a unitary state. Multinational Corporations are a result of the process of this phenomenon. They are empires by themselves. Their
TOPIC : MULTI-NATIONAL CORPORATIONS
MULTINATIONAL CORPORATIONS
Multi-National Corporations can also be termed as Multi-National Companies or Multi-National Enterprises. A corporation or group of companies that has its operations of producing and selling its products in home and host countries is said to be an MNC. MNC has its production and sales in different countries based on their parent organization rules. The operations are registered in different regions based on the product and services offered by these corporations. A company that earns more than a quarter of its income from outside its home country is considered, multinational. MNC’s are four fold in formation. They are: 1 .A multinational, decentralized corporation with a strong home base. 2. A global centralized corporation. 3. An international company that grows and builds on the parent company’s technology 4. A transitional company that combines the three above, (e.g. Nestlé’s) GLOBALIZATION AND ITS RELATIONSHIP WITH MNCS The first word that strikes every mind when we learn or understand Multinational corporations is Globalization. The process of globalization, has led to significant changes in very sector and economy of the world. The new generation companies and industries follow globalization to approach different market strategies. The key process of globalization is analyzing and understanding the world , interchange of different world views and following standard code which is applicable uniformly. Globalization has direct effect on every business enterprises from Small- medium – large multinational companies. Globalization has brought with it a socio-economic upheaval which would have been unimaginable a few years ago. It has shrunk a world that was once huge and transcended its borders making the world a unitary state. Multinational Corporations are a result of the process of this phenomenon. They are empires by themselves. Their