Question

In: Economics

Why do we have to know nationality of a MNC? Does nationality of a MNC affect...

  1. Why do we have to know nationality of a MNC? Does nationality of a MNC affect the performance and operation style of the MNC?

Solutions

Expert Solution

MNC reffers to multinational corporation which has its facilities as well as their assets atleast in one country,other than countrywher it has its headquarter.MNC has its services in many countries but the main service is provided by its official headquarter.Generally it is centralized or coordinated from the home country of these MNC.

It is important to know the nationality of these multinational corporation because of the following reasons:

a)Generally ,the headquarter of a MNC is usually situated at its homecenter.hence the nationality of MNC is usually determined by the place where its headquarter is situated .however in some cases it may not be true.

b)usually a MNC deals in many countries,it has its brenches allover the world ,if its nationality is known one company can know that directly or indirectly they are doing with which country.  

c)If the nationality of MNC is known ,it can also help in soothing relation between these countries where the branches of these MNC are situated.

In my estimation, nationality of MNC affects it's operating and performance style in the following ways:

a)nowadays,global politics is on the zenith, a country like to trade most with the country which have good relation ,if the relation of country is good with the nation of theMNC than the corporation is able to perform and operate it's function freely without any limitation.

b)on the other hand if a country has not good relation with the nation of MNC, they can put unfavourable restriction on them.MNC may not be allow to perform and operate its function freely.They may not support the corporation me They can even boycott the company.

In these way nationality of MNC affects it's function.

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