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Major players of MNC and Modes of Operations of MNC

Major players of MNC and Modes of Operations of MNC

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Published by Santu Patel

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Categories:Topics, Art & Design
Published by: Santu Patel on Oct 20, 2010
Copyright:Attribution Non-commercial

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07/07/2013

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MNCs AND THEIR MODE OFOPERATIONS
 
MNCs
A
multinational corporation (MNC)
or 
transnationalcorporation
(
TNC
) called
multinational enterprise
(
MNE
).It is a corporation or an enterprise that manages production or deliversservices in more than one country and also referred to asan
international corporation
.The International Labour Organization (ILO) has defined an MNC as acorporation that has its management headquarters in one country,known as the
home country
, and operates in several other countries,known as
host countries
.Some Multinational corporations are very big, with budgets thatexceed some nations' GDPs.
 
Why companies become MNCs?
To protect themselves from the uncertainties and risks of  business cycles, political policies and social uncertainties of thedomestic country.To tap the growing global market for various goods and services.To increase market share.To reduce costs.To overcome tariffs.To have technological advantage.

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