explain two features of an MNC
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The following are the three main features of MNCs:
i) They base their operations in many different countries based upon market demand and availability of cheap labour.
ii) They bring huge investments along with modern technology into production. They expand production by buying up local companies or entering into partnership with them.
iii) They link the supply chain across countries and lead to integration of markets. In doing so, they drive prices in the local market and provide stiff competition to local small scale industries
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i) They base their operations in many different countries based upon market demand and availability of cheap labour.
ii) They bring huge investments along with modern technology into production. They expand production by buying up local companies or entering into partnership with them.
iii) They link the supply chain across countries and lead to integration of markets. In doing so, they drive prices in the local market and provide stiff competition to local small scale industries
:-):-):-):-):-):-)
varsha303:
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(i) Huge Assets and Turnover:
Because of operations on a global basis, MNCs have huge physical and financial assets. This also results in huge turnover (sales) of MNCs. In fact, in terms of assets and turnover, many MNCs are bigger than national economies of several countries.
(ii) International Operations Through a Network of Branches:
MNCs have production and marketing operations in several countries; operating through a network of branches, subsidiaries and affiliates in host countries.
Because of operations on a global basis, MNCs have huge physical and financial assets. This also results in huge turnover (sales) of MNCs. In fact, in terms of assets and turnover, many MNCs are bigger than national economies of several countries.
(ii) International Operations Through a Network of Branches:
MNCs have production and marketing operations in several countries; operating through a network of branches, subsidiaries and affiliates in host countries.
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