Question

what is MNCs internal spatial division?

Answer 1

MNCs internal spartial division

MNC stands for Multi National Corporation which means any corporate organisation which owns and controls production of goods and services, has facilities and other assets in at least one country other than its home country.It has offices and factories in different coutries with a centralised head office where they can globally coordinate with each other.

Spartial division stands for division such as organizational structure, internal structure - dimensionally,geographically, etc

MNCs internal spatial division depends upon the following:--

1. Its Organizational structure- progresses from simple things to the complex ones and from lower level to an advanced level.

2.Its Internal structure- progresses from nodes to networks, from home to abroad.

Internal Spartial patterns  are of three types. They are:-

a) the inward pattern - MNC's use different kinds of internal organizations which manifests spatial arrangements. Internal organization of production can be manufacturing plants which may be located in different countries producing same or similar product & creation of job opportunities.

b) the expanding pattern - it depends on the growth of labour productivity, technological and managerial knowhow, development of knowledge economy e.g. enhancement of acaedemics.  

c) the global network patterns- globally concentrated production, production as per Host- market, product specialization according to a global or regional market, transnational vertical integration