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
- List the characteristics of Policy analysis.(Solved)
List the characteristics of Policy analysis.
Date posted: May 2, 2019. Answers (1)
- List the elements of Classic comprehensive planning.(Solved)
List the elements of Classic comprehensive planning.
Date posted: May 2, 2019. Answers (1)
- Describe the Basic Methods of Policy Analysis and Planning.(Solved)
Describe the Basic Methods of Policy Analysis and Planning.
Date posted: May 2, 2019. Answers (1)
- Explain the economic policy theories.(Solved)
Explain the economic policy theories.
Date posted: May 2, 2019. Answers (1)
- Explain Who sets monetary policy and who creates fiscal policy?(Solved)
Explain Who sets monetary policy and who creates fiscal policy?
Date posted: May 2, 2019. Answers (1)
- Explain the important things to consider in decision making.(Solved)
Explain the important things to consider in decision making.
Date posted: May 2, 2019. Answers (1)
- Describe the policy making process in economics.(Solved)
Describe the policy making process in economics.
Date posted: April 30, 2019. Answers (1)
- Explain the topologies of participation in development programs and projects.(Solved)
Explain the topologies of participation in development programs and projects.
Date posted: April 30, 2019. Answers (1)
- Describe People's participation and empowerment policy.(Solved)
Describe People's participation and empowerment policy.
Date posted: April 30, 2019. Answers (1)
- Describe the resource property rights.(Solved)
Describe the resource property rights.
Date posted: April 30, 2019. Answers (1)
- Describe the institutional development.(Solved)
Describe the institutional development.
Date posted: April 30, 2019. Answers (1)
- Explain the General economic and social policies.(Solved)
Explain the General economic and social policies.
Date posted: April 30, 2019. Answers (1)
- Explain the types of policies that affect sustainability.(Solved)
Explain the types of policies that affect sustainability.
Date posted: April 30, 2019. Answers (1)
- Explain the effects of Policy on the Composition of National Output.(Solved)
Explain the effects of Policy on the Composition of National Output.
Date posted: April 30, 2019. Answers (1)
- Outline the Main Problems of Managing the Macroeconomics.(Solved)
Outline the Main Problems of Managing the Macroeconomics.
Date posted: April 30, 2019. Answers (1)
- Describe the demand Management.(Solved)
Describe the demand Management.
Date posted: April 30, 2019. Answers (1)
- Give the objectives of Supply-side policies.(Solved)
Give the objectives of Supply-side policies.
Date posted: April 30, 2019. Answers (1)
- Describe the Macroeconomic Policy Instruments.(Solved)
Describe the Macroeconomic Policy Instruments.
Date posted: April 30, 2019. Answers (1)
- What is Economic policy?(Solved)
What is Economic policy?
Date posted: April 30, 2019. Answers (1)
- State and explain the conflicts between Objectives.(Solved)
State and explain the conflicts between Objectives.
Date posted: April 30, 2019. Answers (1)