Question

Define the Multinational Enterprise. What are the major aspects of the top 100 Multinationals (size, home country, industry, TNI,

Answer 1

Multinational Enterprise

A multinational enterprise is one which is started or incorporated in one country (the home country) but also doing its operation in other countries (i.e. the host country).

It is also defined as the enterprise which registered and operartes in more than one country at a time

It is also known as Multinational Corporation(MNC), Transnational Corporation.

Aspects of Multinational Enterprise

1. Transnationality Index(TNI)-

It means the enterprise that has global presence get the ranking through it.

Calculation of TNI is done with the arithmetic mean of the following ratios

• Ratio of foreign assests to total assets
• Ratio of foreign sales to total sales
• Ratio of foreign employment to total employment

2.Size

The size of the MNC's are big. They have huge assests both financial and physical so it leads to huge turnover of MNC's.

3.Home Country

The home country here plays a major role because MNC is operating in many countries and managed by the home country. It has unity of control as the activities are managed by head office which is generally located in home country.