Question

MNCs have international operations and giant size. explain​

Answer 1

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Four features of an MNC are explained below :

1.International operations : Global MNCs run their foreign operations by establishing branches or subsidiary companies in host countries.

2.Giant size : MNCs have huge basis of assets and revenues because of their huge size operations spread in a number of countries.

3.Centralised control : MNCs have a centralised control system. All the decisions for subsidiaries or branches are taken by the headquarters of MNCs. Headquarter of MNCs exercise control over their foreign subsidiaries.

4.Modem technology and management practices : Most of the MNCs compete in the international markets on the basis of their modem technology and efficient management practices. Infact, these global enterprises are sources of spread of modern technology and management practices in the world.