Multinational Organizations : A Multinational Corporation

1247 Words Mar 29th, 2016 5 Pages
A Multinational Corporation, also known as MNC, is a corporation that has it facilities and other assets in more than one country, in addition to its home country. These corporations operate comprehensively in more than one country by having a main office in a centralized location where they systematize global management and have offices and/or factories in different countries. Multinational Corporations may participate in numerous activities such as manufacturing, importing and exporting in different countries. In addition, it may also lend its licenses, patents and managerial services to the firms in its host countries.
There are four types of Multinational Corporations, which are listed below:
1) a multinational, decentralized corporation with strong home country presence
2) a global, centralized corporation that acquires cost advantage through centralized production wherever cheaper resources are available
3) an international company that builds on the parent corporation 's technology or R&D
4) a transnational enterprise that combines the previous three approaches
Unfortunately, a Multinational Corporation can operate in an unethical manner in a country that is less developed by exploiting natural resources of the host country, the workers and by reaping excessive profits. They may also compete unfairly in the host countries to their disadvantage. Multinational Corporations are the major cause of driving the host countries toward hardships.

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