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Multinational Corporation
Multinational Corporation
INTRODUCTION
1.1Topic
Amultinationalcorporation/companyisanorganizationdoingbusinessin
morethanonecountry.Transnationalcompanyproduces,markets,invests,
andoperatesacrosstheworld.Itisintegratedglobalenterprisewhichlinks
globalwithglobalmarketatprofit.Thesecompanieshavesalesofficesand/
ormanufacturingfacilitiesinmanycountries.Acorporation(MNC)engages
invariousactivitieslikeexporting,importing,manufacturingindifferent
countries.MNCshaveworldwideinvolvementanda
globalperspectiveinitsmanagementanddecisionmaking.
1.
MNCsconsideropportunitiesthroughouttheglobethroughtheydothe
businessinafewcountries.
2.
MNCsinvestconsiderableportionoftheirassetsinternationally.
3.
MNCsengageininternationalproductionandoperateplantsinthenumber
ofcountries.
4.
MNCstakemanagerialdecisionbasedonaglobalperspective.The
internationaloperationsareintegratedintothecorporationsoverallbusiness.
MNCsarehugeindustrial/businessorganizations.Theyextendtheir
industrial/marketingoperationsthroughanetworkofbranchesortheir
majorityownedforeignaffiliates.MNCsproducetheproductsinoneorfew
countriesandselltheminmostofthecountries.Transnationalcorporations
producetheproductsineachcountrybasedonthespecificneedsofthe
customersofthatcountryandmarketthese.Atransnationalcorporation
mostlyusestheinputsofthehostcountrywhereitoperates
unlikeamultinationalcompany.Largecorporationshavinginvestmentand
businessinanumberofcountries,knowsbyvariousnamessuchas
smultinationalcorporations,internationalcorporationsandglobal
corporationshavebecomeaverypowerfuldrivingforceattheworlds
economy.