Meaning of Multinational Company
A multinational company (MNC) is an organization that operates across multiple countries, managing its global operations from a central headquarters. These companies engage in various business activities like manufacturing and marketing, adapting strategies to local markets while maintaining a unified corporate identity.
Features of Multinational Company
- Operations in multiple countries.
- Centralized global management.
- Diverse workforce across different nations.
- Adaptation of strategies to local markets.
- Coordination of activities and resources on a global scale.
Advantages and disadvantages of multinational companies on host countries
Category | Description |
---|---|
Benefits | Job creation and employment opportunities. |
Transfer of technology and knowledge. | |
Infrastructure development. | |
Access to international markets. | |
Enhanced competitiveness and productivity. | |
Challenges | Exploitation of local labor and resources. |
Economic dependence on MNCs. | |
Environmental degradation. | |
Potential for unfair competition with local businesses. | |
Loss of cultural identity and values. |
Multiple Choice Questions
0%
Question 1: What is a multinational company (MNC)?
A) A company that operates in a single country
B) A company that operates across multiple countries with a central headquarters
C) A company that only exports goods to other countries
D) A company that focuses solely on local markets
Explanation: A multinational company operates across multiple countries with a central headquarters.
Question 2: Which of the following is a feature of a multinational company?
A) Operations limited to its home country
B) Decentralized management with no central headquarters
C) Centralized global management
D) Exclusive focus on one type of product
Explanation: A feature of a multinational company is centralized global management.
Question 3: How does a multinational company typically manage its workforce?
A) By employing only local workers in its home country
B) By having a diverse workforce across different nations
C) By outsourcing all functions to other companies
D) By hiring only remote workers
Explanation: A multinational company typically manages its workforce by having a diverse workforce across different nations.
Question 4: What is a key characteristic of a multinational company's business strategy?
A) Uniform strategy for all markets
B) Adaptation of strategies to local markets
C) Focus solely on online marketing
D) Ignoring local market conditions
Explanation: A key characteristic of a multinational company's business strategy is the adaptation of strategies to local markets.
Question 5: Which of the following is NOT a feature of a multinational company?
A) Operations in multiple countries
B) Centralized global management
C) Ignoring local market differences
D) Coordination of activities and resources on a global scale
Explanation: Ignoring local market differences is not a feature of a multinational company.
Report Card
Total Questions Attempted: 0
Correct Answers: 0
Wrong Answers: 0
--
Related Links
- What is a business
- Types of business entities
- Sole trader
- Partnership
- Public limited company
- SWOT analysis
- Mission statement
- Vision statement
- Aims, Objectives, and Strategies
- Ethical objectives
- STEEPLE analysis
- Stakeholders
- Business Growth
- External business growth
- Economies of Scale
- Mergers and takeovers
- Joint venture
- Franchise
- Multinational Companies (MNCs)
- Worksheets
- YouTube videos
Post a Comment