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Multinational Corporations Essay

753 Words4 Pages

INTRODUCTION

The definition of internationalization is global level business, its process via which firm expands its business outside the national (domestic) market. An organisation its general dealing international by exporting the products first, by the establishing sale representatives in overseas and finally setting up production facilities. Hence, international organisation may progress Multinational Corporations (MNC)-is the firms increase because of capital more moving than labour. The cheap labor & raw materials inputs from other countries, mutinatinal firms establish subsidiaries over there. Economists are not in agreement as to how multinational or transnational corporations should be defined. Multinational corporations have many dimensions and can be viewed from several perspectives which is (ownership, management, strategy and structural). On the other hand, an enterprise operating at some countries but manged one country, generally any other company or group that obtain a quarter of its benefits from operations outside of its home country is considered a multinational corporation. There are divided into four categories of multinational corporations, no 1: demoralize a corporation with strong home country presence . no 2 : a global corporation obtain cost of advantage through centralized production whever cheaper resources are available, no 3: an international company that improve on the parent corporation’s technology or research develop to develop and

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