Define multinational corporation and explain major features of such an organisation.
Define multinational corporation and explain major features of such an organisation.
Multinational corporations are those companies who incorporate themselves in their own (work) country but operate their business in many other countries through a network of their branches, subsidiaries etc. For e.g.: Coca-Cola, Sony, L.G., Samsung. The main features of MNCs are :
(a) Giant Size: The assets and sales of MNCs are quite large. These companies operate on large scale. Their operations are so huge that sometimes their sales turnover exceeds the Gross Nationalised Product of an underdeveloped country. MNCs enjoy a high creditworthiness.
(b) International Operates: MNCs operate in more than one country. It has its own branch, factories offices and so on.
(c) Professional Management: A MNC enjoys professional experts, specialised people and keeps updating the knowledge and skill of their employee by imparting them training from time to time. It employs professional to handle the advance in technology.
(d) Centralised Control: The branches of MNC spread in different countries are controlled and managed from headquarters located in the home country. All the branches operate within the policy framework formed by headquarters.
(e) Sophisticated Technology: MNCs make use of latest technology to supply world class products. They employ capital intensive technology and innovative techniques of production.
Multinational corporations are those companies who incorporate themselves in their own (work) country but operate their business in many other countries through a network of their branches, subsidiaries etc. For e.g.: Coca-Cola, Sony, L.G., Samsung. The main features of MNCs are :
(a) Giant Size: The assets and sales of MNCs are quite large. These companies operate on large scale. Their operations are so huge that sometimes their sales turnover exceeds the Gross Nationalised Product of an underdeveloped country. MNCs enjoy a high creditworthiness.
(b) International Operates: MNCs operate in more than one country. It has its own branch, factories offices and so on.
(c) Professional Management: A MNC enjoys professional experts, specialised people and keeps updating the knowledge and skill of their employee by imparting them training from time to time. It employs professional to handle the advance in technology.
(d) Centralised Control: The branches of MNC spread in different countries are controlled and managed from headquarters located in the home country. All the branches operate within the policy framework formed by headquarters.
(e) Sophisticated Technology: MNCs make use of latest technology to supply world class products. They employ capital intensive technology and innovative techniques of production.
