Multinational companies are large business organization operated in two or more countries. They have headquarter in home country and business operations in host countries.
Generally, home country is developed country and host countries are developing countries. Multinational companies think globally but act locally. They operate in various business environments.
* Licensing : It is granting license to use technology or brand name.
* Joint venture: It is establishing production facilities in partnership with local businessmen in host countries.
* Subsidiary: It is establishing production facilities through foreign direct investment in host countries.
- Multinational company is a large business organization of big size.
- Multinational company has headquarter in home country and business operations in several host countries.
- Multinational company operates in various business environment.
Generally, home country is developed country and host countries are developing countries. Multinational companies think globally but act locally. They operate in various business environments.
The business operations of multinational counties consist of:
* Foreign trade : It consists of exports and imports.
* Licensing : It is granting license to use technology or brand name.
* Joint venture: It is establishing production facilities in partnership with local businessmen in host countries.
* Subsidiary: It is establishing production facilities through foreign direct investment in host countries.
Examples of important multinational companies are: Microsoft, Coca-Cola, Pepsi, Colgate Palmolive, Toyota, Nokia, Sony etc.
Also Read:
The main points in the concept of multinational companies are:
- Multinational company is a large business organization of big size.
- Multinational company has headquarter in home country and business operations in several host countries.
- Multinational company operates in various business environment.
