What the objective of mnc?

Answer 1

OBJECTIVES

1. MNCs have managerial headquarters in home countries, while they carry out operations in a number of other (host) countries.

2. A large part of capital assets of the parent company is owned by the citisens of the company's home country.

3. The absolute majority of the members of the Board of Directors are citisens of the home country.

4. Decisions on new investment and the local objectives are taken by the parent company.

5. MNCs are predominantly large-sized and exercise a great degree of economic dominance.

6. MNCs control production activity with large foreign direct investment in more than one developed and developing countries.

7. MNCs are oligopolistic in character. It is sustained by modern technologies, management skill, product differentiation and enormous advertising.

8. MNCs are not just participants in export trade without foreign investments.