The main characteristics of multinational companies:
- Large scale business:
Multinational companies operate globally so that its capital is also considerably large.Its assets and volume of production are also quite large. The sales turnovers of some multinational companies are much greater than the annual budget of many developing countries.
- Productive Organisations:
Multinational companies are mostly engaged in the production of goods and services in many countries and they produce and sell goods and services in one brand name or trademark all over the world.
- Global operation:
Multinational companies operate all over the world. They produce qualitative products in the parent company and sells its products and services all over the world.
- Advanced technology:
In Multinational companies,they use modern scientific and advanced technology to produce goods at competitive price. For examples, the Coca-cola company to the USA has a unique blending formula which is inaccessible to any other companies of the world.
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Management and control:
Multinational companies establish a parent company which has control over the management and finance of the subsidiaries operated in many countries. However, enough autonomy is given to the subsidiary companies to perform their day to day activities.
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Monopolistic market:
Multinational companies produce high qualitative products using advanced technology and skilled workforce. Because this type of market would be comprised of one supplying firm, consumers would have no choice but to purchase solely from this firm.