Tag: elements of business

A multinational corporation (MNC) or worldwide enterprise is a corporate organisation which owns or controls production of goods or services in at least one country other than its home country.

Multinational organisations have the ability to source labor cheaply. The ability to operate in multiple different companies builds in the ability to capitalize on cheap labor markets. 

• Location – MNCs have their headquarters in home countries and have their operational division spread across foreign countries to minimize the cost.
• Capital Assets – Major portion of the capital assets of the parent company is owned by the citizens of the company’s home country.
• Board of Directors – Majority of the members of the Board of Directors are citizens of the home country.
• MNCs are large-sized corporation and exercise a great degree of economic dominance.

"International business" is also defined as the study of the internationalisation process of multinational enterprises. A multinational enterprise (MNE) is a company that has a worldwide approach to markets, production and/or operations in several countries. and A multinational corporation or worldwide enterprise is a corporate organisation which owns or controls production of goods or services in at least one country other than its home country

• Access to Consumers – Access to consumers is one of the primary advantages that the MNCs enjoy over companies with operations limited to the smaller region. Increasing accessibility to wider geographical regions allows the MNCs to have a larger pool of potential customers and help them in expanding, growing at a faster pace as compared to others.
• Accesses to Labor – MNCs enjoy access to cheap labor, which is a great advantage over other companies. Taxes and Other Costs – Taxes are one of the areas where every MNC can take advantage. Many countries offer reduced taxes on exports and imports in order to increase their foreign exposure and international trade. 
• Overall Development – The investment level, employment level, and income level of the country increases due to the operation of MNC’s. Level of industrial and economic development increases due to the growth of MNCs.
• Technology – The industry gets the latest technology from foreign countries through MNCs which help them improve on their technological parameter.
•  R&D – MNCs help in improving the R&D for the economy.
• Exports & Imports – MNC operations also help in improving the Balance of payment. This can be achieved by the increase in exports and a decrease in the imports.
• MNCs help in breaking protectionism and also helps in curbing local monopolies, if at all it exists in the country.

A multinational corporation or worldwide enterprise is a corporate organization that owns or controls production of goods or services in at least one country other than its home country.

East India Company was the first MNC established in 1600 and after that on March 20, 1602, the Dutch East India Company was the second MNC in India and the largest company. 

Multinational companies have offices and/or factories in different countries and usually have a centralized head office where they coordinated international management.

One of Indian Multinational companies Videocon Industries limited is a large diversified Indian multinational company headquartered in Mumbai. The group has 17 manufacturing sites in India and plants in Mainland China, Poland, Italy and Mexico. It is the third largest picture tube manufacturer in the world. The group is a US$5.5 billion global conglomerate.