Answer :

Multi-National Corporations are large companies established in a particular country and has offices, markets and produces and sells its products in many countries. MNCs are huge organisations that own and control huge resources in terms of capital, technology, people and information. They have large physical and financial assets and bulky sales.


MNCs operate in many different countries. They have a very vast marketing network. Their assets may be diversified in many countries. Thus they carry out their production, marketing and sales in many countries, even in all the continents. Even though they have branches in different parts of the world, their marketing, sales and other important decisions will be taken in the headquarters in the home country. Even though each office may have decision making bodies, their important decisions will be taken by the central headquarters.


MNCs will always have highly sophisticated and advanced techniques and technology for production. The will always develop newer cost-reducing methods of production through consistent spending in research and development. Also, they employ the most efficient and professional staffs to handle the organisation. Thus they reap huge profits. There are many aspects that MNCs consider while starting a production unit in a foreign country. Some of these conditions are closeness to market, low cost of labour, availability of factors of production, government policies, etc


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