ABOUT MULTINATIONAL COMPANIES

Multinational Companies (MNC’s):
The term “multinational” consists of two different words,
‘multi’ and ‘national.’ The prefix ‘multi’ means ‘many’, while the
word ‘national’ refers to nations or countries. Therefore, a
multinational company may be defined as a company that operates
in several countries. Such a company has factories, branches and
in more than one country. According to the United Nations
Commission on Multinational Corporations, a multinational
corporation is a corporation which operates, in addition to the
country in which it is incorporated, in one or more other countries.
A multinational corporation is also known as a transnational
corporation, namely, ‘Global giant’,or ‘World enterprise’ or
‘international enterprise’. All forms of business organisation that
transcend political frontiers may be called as multinational firms.
In simple words, a multinational company is a company
carrying on business in two or more countries. According to Neil
H.Jocoby“A multinational corporation owns and manages business
in two or more countries”
FEATURES:
1. A multinational company is operated in more than one country
simultaneously.
2. It is generally very large in size.
3. Its purpose is to reduce transport costs and to make use of raw
materials, labour, capital and market of foreign countries.