Multi National Corporation

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MNC

MULTI NATIONAL
CORPORATION
What is a Multinational Corporation (MNC)?
A multinational corporation (MNC) is a company that operates in its home
country, as well as in other countries around the world. It maintains a 
central office located in one country, which coordinates the management
of all its other offices, such as administrative branches or factories.
Features of MNCs
The main features or elements of MNCs are as follows
1.        Considers opportunities throughout the globe though they do the business in a
few countries.
2.        To invest considerable portion of their assets internationally.
3.        They are huge industrial/business organisation.
4.  It engages in international production and operates plants in a number of
countries.
5.        They take managerial decisions on a global perspective.
6.   They produce in one or a few countries and sell them in most of the countries.
7.  Their international operations are integrated into the corporations overall
business.
Reasons for Being a Multinational
Corporation
1. Access to a larger talent pool
Multinational corporations are also known to hire
only the best talent from around the world, which
allows management to provide the best technical
knowledge and innovative thinking to their
product or service.
2.  Avoidance of tariffs
When a company produces or manufactures its
products in another country where they also sell
their products, they are exempt from import
quotas and tariffs.
Advantages of Being a Multinational Corporation
There are many benefits of being a multinational corporation including:
1. Efficiency
In terms of efficiency, multinational companies are able to reach their target
markets more easily because they manufacture in the countries where the target
markets are. Also, they can easily access raw materials and cheaper labor costs.
2. Development
In terms of development, multinational corporations pay better than domestic
companies, making them more attractive to the local labor force. They are usually
favored by the local government because of the substantial amount of local taxes
they pay, which helps boost the country’s economy.
3. Employment
In terms of employment, multinational corporations hire local workers who know
the culture of their place and are thus able to give helpful insider feedback on what
the locals want.
4. Innovation
As multinational corporations employ both locals and foreign workers, they are able
to come up with products that are more creative and innovative.
1. Microsoft 2. Apple Inc
Founder – Bill Gates  Founder – Steve Jobs, Steve Wozniak, and Ronald
Year of Establishment –1975 Wayne
Revenue Generated – 89.95 in billion dollars Year of Establishment – 1976
(2017) Revenue Generated – 260.174 billion Dollars
Total assets- US$ 301.3 billion (2020) (2019)

Total equity-US$ 118.3 billion (2020) Total assets– US$ 338.516 billion (2019)
Total equity- US$ 90.488 billion (2019)
3. HP (Hewlett Packard INC)
4. P&G (Procter & Gamble)
5. Coca Cola Company
6. PepsiCo
7. Sony Corporation
8. Aditya Birla Group
9. Nestle
10. Samsung
11. Deloitte
12. Hindustan Unilever
13. Nike.Inc

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