Get premium membership and access questions with answers, video lessons as well as revision papers.

Describe what Multinational Corporations means.

      

Describe what Multinational Corporations means.

  

Answers


Kavungya
There is no universally agreed upon definition of Multinational corporation(MNCs). Various scholars have offered suggestions, but none seems to have been fully accepted. Part of the definitional problem seems to stem from the complex nature of the global activities: there are international companies, global companies, transnational companies in global industries and multinational companies.

Generally, MNCs can be defined as large companies that compete on a global basis often in single industry such as Shell/BP in energy (fuel), Nestle in food, Unilever in food, Price Waterhouse Coopers in management accounting and auditing, Vodafone in telecommunications, among others. It is also not uncommon to find MNCs that have major businesses in several unrelated industries such as power systems , plastics, medical equipment , entertainment and financial services. MNCs have a size or scale requirement that exceed the size of a single national market; treat the world as though it were a single market; and have a centralized strategic leadership that coordinates global management but a decentralized operational management that is different to national origin. The MNCs can consists of a network of loosely organized national companies, competing locally against others in a single country setting . they can also behave like global companies pursuing centrally directed strategies that take advantage of their global power and resources to compete successfully in domestic markets in which they have operations. This means that MNCs compete both locally and internationally

There are three different features or traits of MNCs. These are;
I) The modern MNC is a very large and complex organization
II) MNCs have a strong tendency to produce differentiated, technologically intensive products in relatively concentrated industries
III) MNCs have a relatively higher rate of performance, as measured both by profits and by growth as compared to national industries.
Kavungya answered the question on May 2, 2019 at 12:31


Next: List the characteristics of Policy analysis.
Previous: Explain Why MNCs Establish Businesses in Foreign Countries?

View More Economics of Public Policy Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions