by Zulfiqar Hasan
What is a multinational Corporation?
A corporation that operates in two or more countries is called Multinational Corporation.
A multinational company is one which has its home in one country but live and operate under the law and customs of other country . the head office of multinational company is in one country and its branches are spread all over the world.
A company with production and distribution facilities in more than one country.
Some times multinational corporations are called MNEs. Examples of Multinational Corporations are: Unilever Novartis, Airtel, Grameen Phone, Glaxosmith, HSBC etc.
Features/Characteristics of Multinational Corporations
MNCs have some distinct characterisitcs. Some of these are:
- Operates in more than one country
- Huge amount of capital
- Large sized plant and machinery
- Various activities
- Market expansion on large scale
- Professional management
- Advance technology
- Profit is the main objective
- Control of head office
- Creation of new project
- Low-cost locations
- Gaining a strong foothold into the international market
- Cheaper labor costs
- Cheaper raw materials and distribution costs
- Taking advantage of the many tax breaks offered by foreign countries
- Access to new technologies and methods
- Availability of government grants
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