Multinational company

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Transcript of Multinational company

COMPANYIntroduction

Definition Of Company

Types Of Company

MULTINATIONAL COMPANYDefinition OF MNCs

History Of MNCs

Examples Of MNCs

Characteristics

Advantages

Disadvantages

Impact On India

Conclusion

A company means a body of individuals associated

together for a common objective, which may be

business for profit or for some charitable purposes.

WHAT IS COMPANY

Paid of capital

Public company

Private company

Holding/subsidiary company

Department undertaking company

Government company

Public corporation

Public sector company

TYPES OF COMPANY

An Enterprise operating in several countries but managed

from one (home) country.

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Multinational company is made out of two words‘multi’ and ‘national', which have home in onecountry but operate and live in different which areoperated or are under headquarters in the homecountry.

Multinational corporation are called by differentname such as transnational corporation, globalenterprise or international enterprise country, meansthey have branches , factories ,workshop ,headquarter in different countries .

A multinational corporation or multinationalenterprise is a corporation that is registered in morethan one country or that has operations in more thanone country.

It is a large corporation which both produces andsells goods or services in various countries.

For example coco cola origins in the united state, but a

workers drinks coke ‘made in Nepal’ to ques his thirst.

Similarly, Netscape coffee is originally produce in

Switzerland , but an American family enjoys ‘Nescafe’

made in ‘USA’ every morning in the Chicago.

The following are the characteristics of the multinational

companies:

1.Large scale business:

The capital of multinational companies considerably

large. Its assets and volume of sales are also quite large.

The sales turnover of some multinational companies are

much more then the annual budget of many developing

countries.

2. Productive Organization:

Multinational companies are involved in the productiondistribution of goods and services at the internationalcompanies and level. They produce goods and sales themin one brand name of trademark all over the world.

3.Global operation:

Multinational companies operate globally. the parentcompany manufacture an sells its products and servicesthrough its subsidiaries established in other countries .Hence, they perform their business scale at the globalscales

4. International Operation:

A multinational corporation operates in more than one

country . It has branches , factories , offices in several

countries.

It operates through a network of branches and

subsidiaries in host countries. They sell their products

in different countries . For eg : Coca Cola , apple etc.

5.Professional Management:

A Multinational corporation employs professional

experts , specialized people. MNC”S Try to keep their

employees updated by imparting them training from

time to time. It employs professionals to handle the

advance in technology effectively.

Faster Growth

Access to cheaper inputs.

Increase Quality and Efficiency.

New Market opportunities.

Diversification.

Increase cost

Foreign regulation and standard.

Delay in payments.

Complex organizational structure.

Large amount of tax collections through MNC’s

Increase revenue

Economic health improve

Employment increase

Foreign relation increased

Competitions increased and more employment

opportunity are available

Gives advantages to domestic companies by purchasing

of raw materials.

New company having network to expand their business