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Features of Multinational companie(MNC)s

Followings are the features of Multinational Companie(MNC)s:-

1. Market area: MNCs cover the market of two or more country territory area. They purchase the raw material from different countries and also sale their finish goods and services to more than two countries. So, MNCs have to capture the international market in the light of global prospect.

2. Giant size: Generally the size of a business unit is calculated on the basis of its amount of capital, number of employees, amount of profit, amount of product etc. The size of MNCs is giant from all these point of views. Its giant size is because of huge scope of market.

3. Foreign collaboration: In case of MNCs, foreign collaboration is very much essential. Every country is to enter different agreement with countries pertaining to sale of goods, sales of technology, production of goods, use of brand, dividend payment etc.

4. Centralized control: Inspite of doing the business of MNCs in different countries,the entire control system is done from its home country. The headquater is situated in the home country where from all necessary policies, rules and regulations and marketing and other strategies are formulated to be implemented in different countries in different ways or in a same way.

5. Advance Technology: In fact, the taste, design and quality of the products and services of MNCs have to satisfy the people of different countries. So, every MNC is to apply advance and sophisticated technology.

6. Nature of Investment: There are two type of investment, such as capital intensive and labour intensive. In case of MNC generally capital intensive investment is made because these companies investment more capital for purchasing high technology and machines instead of employing manual labours and workers.

7. Product innovation: Every MNC has a separate department of Research and Development for product innovation. MNCs invest a huge amount of capital for qualitative research work, which maintain their international reputation and global brand.

8. Professional Management: MNCs always apply professioal management skill. It is very essential to employs professional skills specialised knowledge and ability by MNCs because of its world wide operation.

9. Oligopolistic Power: From type of market point of view, the market of MNCs is Oligopolistic. The market power of MNCs is called Oligopolistic as because a few number of firms or business involve in the same time of business. Some time MNCs take over other firm to increase their economic power by virtue of their dominant position in the market.

10. Form of Organisation: there are different forms of organisation of MNCs, such as Branches, joint venture companies, Subsidiary companies, Franchise holder, Turn key projects. Considering nature, type and other factors, the MNCs can select any form of organisation for extension of its operations.


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