Why are global enterprises considered superior to other business organisations?

Multinational corporations (MNCs) are enterprises with operations in more than one country. They are huge industrial organisations characterised by their large size, wide range of products and use of advanced technologies and sophisticated marketing strategies. It is because of all these characteristics that MNCs are able to capture a bigger share of market compared with other enterprises. The following features make MNCs superior to other business organisations.

(a) Huge capital resources: MNCs have huge resources as they are capable of generating capital from all over the world. As they have goodwill, they can also borrow from international banks and from a large number of investors who are willing to invest in them for huge returns.

(b) Foreign collaborations: MNCs generally enter the market with the help of local private companies. This is mainly because of the restrictions imposed on them by the government and also to take advantage of the brand image of the Indian company.

(c) Advanced technology: These companies invest huge amounts in research and development of technology. Thus, new technology helps them to increase their efficiency and attain a superior position in the market.

(d) Product innovation: Multinational corporations have refined research and development centres for the innovation of new products. This helps them to sustain in the market and retain their large consumer base