Question

State the features of global companies?​

Answer 1

These enterprises have huge financial resources. They have the ability to raise funds from different sources. Funds are raised by the issue of issuing equity shares, debentures, etc to the public. The investors of the host countries are always willing to invest in them because of their high credibility in the market.

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Answer 2

FEATURES OF GLOBAL COMPANIES:

• To become a multinational corporation, the business must be large and must own a huge amount of assets, both physical and financial.
• Multinational companies maintain production and marketing operations in different countries. In each country, the business may oversee multiple offices that function through several branches and subsidiaries.
• In relation to the previous point, the management of offices in other countries is controlled by one head office located in the home country.
• Multinational corporations keep growing. Even as they operate in other countries, they strive to grow their economic size by constantly upgrading and by conducting mergers and acquisitions.
• When a company goes global, they need to make sure that their investment will grow substantially. In order to achieve substantial growth, they need to make use of capital-intensive technology, especially in their production and marketing activities.
•  Multinational companies aim to employ only the best managers, those who are capable of handling large amounts of funds, using advanced technology, managing workers, and running a huge business entity.
• One of the most effective survival strategies of multinational corporations is spending a great deal of money on marketing and advertising. This is how they are able to sell every product or brand they make.
• Because they use capital-intensive technology, they are able to produce top-of-the-line products.