Question

Minimum 200 words

1. Critically assess which strategy has been used by a Multi-National Corporation (MNC)in your country. Make sure you list the country you are in and the MNC.

Answer 1

ANS: The Multinational corporation is a business organisation whose activities are to be located in the more than two countries and in the organisational form that defines foreign direct investment. Aa the Capital can flow from one country to another in expectation of higher rates of return.

As there are mainly three basic strategies to be followed by all the MNC's of all the countries as : 1.multidomestic 2. Global 3. Transnational

As basically The parent company typically is based on the home country , and it sets up units it in the other country is called host countries. The MNC's could be one that moves some of its operations or sets up subsidiaries in other countries. Two strategies are being used in MNC's as to capture market in other countries are vertical and the horizontal expansions.

Here In India, there are over 40,000 + MNC's with over the 2,50,000 overseas affiliates. The Top companies like the Coca-Cola, PepsiCo, CITI Group, GOOGLE Inc, Sony Corporation , Microsoft Corporation are all considered to be all the best MNC's here in India. As the patent company from foreign invests in land, capital , labour in the domestic country and open its branches in all the world to expansion of business.