The full form of MNC is the Multinational Corporation. It is usually a well-established company located in more than one country. Any company can become an MNC if it enters the global market. The headquarters of an MNC are located in the same country, however, it can be operated in any part of the world.
MNCs can be found in a wide range of sectors including retail and marketing to food and technology. Some of the most popular MNCs are Apple, Amazon, Google, and Microsoft.
Characteristics of MNC
- An extensive amount of financial and physical assets
- Generate substantial profit
- Network of branches in different countries
- Continuous economic growth
- Use of capital-intensive technology for production and marketing activities
- Must employ rightful skilled professionals
- Produce top-quality products/offer great services
Models of MNC
In the centralized model, companies build headquarters in their home country and then develop various manufacturing plants and production facilities in other countries. It helps to avoid tariffs and lower production costs.
The regionalized model is when a company keeps its headquarters in one country that supervises a collection of offices that are located in other countries.
In the multinational model, a parent company operates in the home country and puts up branches in different countries. The set branches are more independent in their operations.
Advantages of MNC
- Creates numerous job opportunities
- Establish facilities in low-cost nations to produce products and services more cheaply
- A significant source of financial inflows to the growing countries
- Provides access to a broader range of prospective customers
Popular MNCs in India
- Tata Group
- Aditya Birla Group
- HCL Technologies
- Amazon India
Popular MNCs in the World
- Apple Inc
- Procter & Gamble
- Coca Cola
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