1.WORLD WIDE OPERATION
The multinational companies extend their operation to two or more countries.They establish
parent office in one country and extend branches ,subsidiary and affiliation to other countries.
2.CREATE MAXIMUM OPERATION
The multinational companies are extended to many countries.People can grasp the opportunity
People can join the multinational companies according to their capabilities. Manpower can be
well utilized in the multinational companies.
3.ADVANCED TECHNOLOGY
Multinational companies invest a huge amount of money on research and development of latest
technology. Therefore transfer advanced technology to developing countries through subsidiaries
and branches,
4.HIGH EFFICIENCY
Advanced technology are used are for multinational companies. So, manpower can give well training
which increase efficiency of manpower. Due to this cause, the multinational companies can provide
large volume of quality products at cheaper price.
5.Monopolistic Market
Generally, multinational companies supply large quantities of quality products and services
in the international market.So they create a separate brand name and capture a large area of
foreign market. Sometimes they even control a huge market through trade marks and patent right.
6.Product/service organization
A multinational company is based on product/service which produces a mass production of
varieties of goods and services. The company consists own trade mark,patent right ,copy right and
technology for production and distribution of such goods in the international market.
7.Ownership and control
The ownership of such company is shared by both parent company and branch companies as per their capital
investment.However parent company manages and control the operation of its branches and
subsidiary through trade mark, technology, and patent right.
Thank you for this information
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ReplyDeleteThanks this useful in my studies
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