Multinational Company
Defination:
Multinational corporations are business entities that operate in more than one country. The typical multinational corporation or MNC normally functions with a headquarters that is based in one country, while other facilities are based in locations in other countries. In some circles, a multinational corporation is referred to as a multinational enterprise or a transnational corporation .
The exact model for an MNC may vary slightly. One common model is for the multinational corporation is the positioning of the executive headquarters in one nation, while production facilities are located in one or more other countries.
Characteristics Of Multinational Corporations :
The multinational corporations have certain characteristics which may be discussed below :
1.Giant size
The most important feature of these MNCs is their gigantic size. Their assets and sales run into billions of dollars and they also make supernormal profits. According to one definition an MNC is one with a sales turnover of f 100 million.
(2) International Operation :
A Fundamental feature of a multinational corporation is that in such a corporation, control resides in the hands of a single institution. But its interests and operations sprawl across national boundaries. The Pepsi Cola company of the U.S operates in 114 countries. An MNC operates through a parent corporation in the home country.
(3) Oligopolistic Structure :
Through the process of merger and takeover, etc., in course of time an MNC comes to assume awesome power. This coupled with its giant size makes it oligopolistic in character. So it enjoys a huge amount of profit.
(4) Spontaneous Evolution :
One thing to be observed in the case of the MNCs is that they have usually grown in a spontaneous and unconscious manner. Very often they developed through "Creeping incrementalism." Many firms become multinationals by accident.
(5) Collective Transfer of Resources :
An MNC facilitates multilateral transfer of resources Usually
Multinational corporations are business entities that operate in more than one country. The typical multinational corporation or MNC normally functions with a headquarters that is based in one country, while other facilities are based in locations in other countries. In some circles, a multinational corporation is referred to as a multinational enterprise or a transnational corporation .
The exact model for an MNC may vary slightly. One common model is for the multinational corporation is the positioning of the executive headquarters in one nation, while production facilities are located in one or more other countries.
Characteristics Of Multinational Corporations :
The multinational corporations have certain characteristics which may be discussed below :
1.Giant size
The most important feature of these MNCs is their gigantic size. Their assets and sales run into billions of dollars and they also make supernormal profits. According to one definition an MNC is one with a sales turnover of f 100 million.
(2) International Operation :
A Fundamental feature of a multinational corporation is that in such a corporation, control resides in the hands of a single institution. But its interests and operations sprawl across national boundaries. The Pepsi Cola company of the U.S operates in 114 countries. An MNC operates through a parent corporation in the home country.
(3) Oligopolistic Structure :
Through the process of merger and takeover, etc., in course of time an MNC comes to assume awesome power. This coupled with its giant size makes it oligopolistic in character. So it enjoys a huge amount of profit.
(4) Spontaneous Evolution :
One thing to be observed in the case of the MNCs is that they have usually grown in a spontaneous and unconscious manner. Very often they developed through "Creeping incrementalism." Many firms become multinationals by accident.
(5) Collective Transfer of Resources :
An MNC facilitates multilateral transfer of resources Usually