1. MNCs refer to enterprises which own/control production activities outside their base/ home country.
2. MNCs are usually superior/better than to their more local rivals at creating, collecting and cross-fertilising knowledge.
3. MNCs usually possess:
- A larger pool of management talent
- A wider range of skills
- A better understanding of consumer behaviours/market trends
- Technological requirements and competitors more
- A greater perspective of overall business environment and emerging dynamic changes
1. Once a firm extends its business abroad, its international operations assume new perceptions.
Many MNCs are holding a large asset, sometime exceeding their host country’s assets.
2. IBM has operations in 82 nations.
3. It has been estimated that the 500 largest industrial corporations amount for 80% of the worlds direct investment and ownership of foreign affiliates. (See Stopford, 1982)
[Stopford, J.M. (1982): The World Directory of Multinational Enterprises, London: Macmillan]
4. MNCs can contribute to: