Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 8 Multi-National Corporations (MNCs) Notes

→ A multinational company is one which is incorporated in one country (called the home country).

→ A multinational corporation is known by various names such as: global enterprise, international enterprise, world enterprise, transnational corporation etc.

→ “A multinational corporation owns and manages business in two or more countries.” – Neil H. Jacoby

→ “MNC is defined to be an enterprise operating in several countries but managed from one country.”

→ Global enterprises are the business organisations which operate in more than one country.

→ MNC set up their facilities in low cost countries and produce goods/service at lower cost.

→ In India, many Indian companies acquired ISO-9000 quality certificates, due to fear of competition posed by MNCs.

→ Initially MNCs help the Government of the host country, in a number of ways; and then gradually start interfering in the political affairs of the host country.

→ Multinational companies establish themselves in developing countries to enjoy huge profits by selling consumer goods or luxury items.

→ Public enterprises are established to achieve the goal of economic and social development of the country.

Samacheer Kalvi 11th Commerce Notes