What is multinational company

1. An enterprise operating in several countries but managed from one home country. Generally any company or group the derives a quarter of its revenue from operation outside of its home country is considered a multinational corporation. What is Multinational Company?

2. Reasons For Growth Of Mnc’s The manifold reasons are :- Expansion of market territory Market superiority Financial superiority Technology superiority Product innovation

3. Expansion Of Market Territory As the operations of a large sized firm expand and as it is international image build up it seeks more and more extension of it is activities beyond the physical boundaries of the country in which it is incorporated .

4. marketing Superiority It posses a reliable and up- to date market information system . It enjoys market – reputation and faces less difficulty in selling it is product . It adopt more effective advertising and sales promotion techniques .

5. Main Features Of MNC’s Giant size & huge capital resources : MNC’s possess huge capital resources. They are able to tap funds from various sources. Centralised cont rol: They have their headquarters in their home country and exercise over all branches. Advanced technology : Generally, a multi-national corporation has at its command advanced technology so as to provide world class products & services. Oligopolistic power : Oligopoly means a new firms in the same line of business. MNC’s are generally oligopolistic in nature. Product innovation : These enterprises are engaged in the task of developing & superior designs of existing products. Foreign collaboration : Companies for the sale of technology , production of goods , use of brand names for the final product.

6. Objectives of multinational companies To expand the business the beyond the boundaries of the home country . Minimize cost of production ,especially labor cost Available of competitive advantage internationally established an international corporative image. Achieve grater efficiency by producing in the local market and the exporting the product .

7. Advantages of multinational company It have became vehicle of technology to the developing countries . Grater employment and career opportunities are provided by the multinational companies. Variety of goods and services produced for local customers . Multinational companies make commendable contribution to invention in the host country .

8. Features Of Multinational Companies In I ndia MNC’S in I ndia are attracted toward I ndia’s market large potential. Labor competiveness. FDI attractiveness. India’s vast population is increasing. India’s presents are remarkable business opportunity by virtue of it’s sheer size and growth.

9. The India’s MNC’S Metals- Sterlite Industry ,TISCO Auto & Components- Tata motors Packing – Essel Pharmaceutical –SUN , RANBAXY Paints – Asianpaints Additional Companies are: Dell , Skyline millars , Apple , Bharti airtel , Nestle , Reliance Communication.

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