Characteristics of Multinational Corporations

There are many Characteristics of Multinational Corporations. Some are the following:

  • Giant Size: The multinational has giant size. They rule the country’s economy. The multinational corporation earns super normal profits in their industry. i.e the physical assets of IBM are worth around 8 billion dollars.
  • International Operations: The multinational corporations operates in many countries through their headquarters in home country. The multinational runs their operations through a network of branches and subsidiaries in the host country.
  • Centralized control: The Multinational controls its branches or subsidiaries from its headquarters which is in home country. The multinational gives single or same directions to its all the branches because they don’t want to change the standards of their products.
  • Oligopolistic Power: The Multinational corporations has big size in its industry when they go to new country they acquire or merger with the local brands. This coupled with its giant size makes it oligopolistic in character because of which it has a dominant position in the market.
  • International Market: The Multinational corporations has big access of international market as a result of vast resources and skilled people. That’s why MNCs are in the position to sell whatever they want to sell in different countries