1. MULTINATIONAL COMPANIES
By,
M.Gomathi
13MB203

2. MNC
It is a corporation that has registered
in more than one country or that has
operations in more than one country.
 It is a large corporation which both
produces and sells goods or services
in various countries.
 It can also be referred to as
an international corporation.


3. TYPES OF MNC
Ethnocentric
-oriented towards home country
 Polycentric
-oriented towards individual foreign
country
-eg: volvo


4. Contd..
Regiocentric
- oriented towards the host country
-eg: Mc.donalds
 Geocentric
-oriented towards the world
-cococola


5. Strategies of MNC
Licensing
 Exporting
 Franchise
 Joint venture
 Management contract


6. Advantages
Lower labor cost
 Expanded market
 Potential for the high rate of return on
investment
 Increases employment generations


7. disadvantages
Distortion of economic structure
 Political interference
 Payment of dividends and royalty
