Reasons For Growth Of Mnc’s
The manifold reasons are :• Expansion of market territory
• Market superiority
• Financial superiority
• Technology superiority
• Product innovation
Expansion Of Market Territory
As the operations of a large sized firm expand
and as it is international image build up it
seeks more and more extension of it is
activities beyond the physical boundaries of
the country in which it is incorporated .
• It posses a reliable and up- to date market
information system .
• It enjoys market – reputation and faces less
difficulty in selling it is product .
• It adopt more effective advertising and sales
promotion techniques .
Main Features Of MNC’s
• Giant size & huge capital resources: MNC’s possess huge capital
resources. They are able to tap funds from various sources.
• Centralised control: They have their headquarters in their home
country and exercise over all branches.
• Advanced technology: Generally, a multi-national corporation
has at its command advanced technology so as to provide world
class products & services.
• Oligopolistic power: Oligopoly means a new firms in the same
line of business. MNC’s are generally oligopolistic in nature.
• Product innovation: These enterprises are engaged in the task of
developing & superior designs of existing products.
• Foreign collaboration: Companies for the sale of technology
, production of goods , use of brand names for the final product.
Objectives of multinational companies
1. To expand the business the beyond the
boundaries of the home country .
2. Minimize cost of production ,especially labor
3. Available of competitive advantage
internationally established an international
4. Achieve grater efficiency by producing in the
local market and the exporting the product .
Advantages of multinational company
1. It have became vehicle of technology to the
developing countries .
2. Grater employment and career opportunities
are provided by the multinational companies.
3. Variety of goods and services produced for
local customers .
4. Multinational companies make
commendable contribution to invention in
the host country .
Features Of Multinational
Companies In India
• MNC’S in India are attracted toward India’s
market large potential.
• Labor competiveness.
• FDI attractiveness.
• India’s vast population is increasing.
• India’s presents are remarkable business
opportunity by virtue of it’s sheer size and