Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
3.6k views
in Economics by (52.6k points)
closed by

Explain the whole process in which an MNC works?

1 Answer

+1 vote
by (52.4k points)
selected by
 
Best 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.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...