The characteristics of multinational corporations are as follows:-
1. High turnover and assets – An MNC must have a huge capital base and be technologically and economically well-equipped to generate a very high return on investment (ROI).
2. Strong operational network – MNCs drive their operations in multiple segments spread across more than one country at a time. So, such a corporation should have very strong and effective communication, management, and administration network that should work conjointly in a coordinated manner to run the business successfully.
3. Continuous growth – MNCs continuously upgrade themselves in terms of technology and business policy, reaffirming their economic and social development in broader aspects.
4. Technological advantages – They use high-end, sophisticated technology that assures growth in production and marketing segments.
5. Forced marketing – An MNC incurs huge expenditure on advertisements, marketing, and promotional activities worldwide. So, they can create an international market to sell their products globally, even outside the nationâ€™s frontier.
MNCs can provide top-notch quality products and services at reasonable prices, as they always adopt capital-intensive technology that helps leverage their business strate
Business is secure since the production is split across more than one country. For instance, one country has an abundant supply of cheap raw materials. Another has access to cheap yet skilled laborers, yet another one is known for the perfect design and manufacturing of commodities at lower production costs. For Example, the firm imports tires from Asia, auto parts are manufactured in the UK, and the engine is imported from Germany.
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