Question

Describe in your own words what is a multinational company and its goals

Answer 1

A multinational company as the name suggests is a business entity which has business operations in multiple countries i.e it is incorporated or registered and has a head office in one country and is in exchange of goods and services in other countries also. The head office is called the parent company which usually handles all the operations. Also known as MNC has a very large scale of business. Their global presence helps them to perform with efficiency. With global presence they can take advantage of the cheaper access to various resources whetthere it be cheap labor or raw material etc. Their losses in one country can be offset by the profits in another country. MNCs were formed after the globalisation and liberalisation of various economies. They engage in international business. Another benefit is that it has diversified skilled and professional staff.

Goals of MNC :

* Incresed presence

* Efficiency in performance

* Optimum utilisation of resources.

* Innovative mnds

* Expansion and Diversification

* Technological advantage