Business Studies XI Content
Characteristics of Multinational Companies
Characteristics of multinational companies are given below:
- Productive organization: this organization produces various types of goods and services. It is supplies in many countries. It uses its own technology, patent right for manufacturing goods.
- Worldwide: multinational companies operate in whole world. It extends its business worldwide. It establishes many branches in various companies. They extend their business in more than one country.
- Ownership and control: ownership of company remains on both parent and host country. Parent company control, manage and help in the operation of all host countries. They have control in capital, high technology, and trade mark.
- Transfer of technology: these multinational companies are establishes with hug capital and advanced technology. It also transfers the technology in the host countries that can be used for production.
- Marketing superiority: it is large organization which has international name and fame. It has good network worldwide for distribution of goods.
- High efficiency: these organizations operate their business with efficiency. They use advanced technology. They also involve keenly in research works. They used many trained person that helps in the production of quality goods.