In India, it is a very common scenario that as soon as most of us starts our job hunt, we start receiving advises to apply for the Multi-National Corporations (MNCs). So, what are these Multi-National Corporations and how do they operate and why is there such a craze among the youths of today’s date and time to get jobs in the MNCs! Well, these are some of the basic questions, which are needed to be answered in order to cover another truly vital aspect of the Modern Day Business!
Firstly, we need to understand the concept of Multi-National Corporations, before moving ahead and exploring the working mechanism of the MNCs. The Multi-National Corporations (MNCs) are huge industrial organizations, which extend their operations and marketing activities through a network of their branches in several countries. They are characterized by their huge size, large number of products, advanced technology, marketing strategies and network of operations all over the world.
Another thing that we need to understand regarding the Multi-National Corporations is that these MNCs are in a position to exercise massive control over the economy of the world, also because of their capital resources, latest technology and goodwill. Therefore, by the virtue of this, they are able to sell any product in different countries on the globe!
Hence, their impact on the International Economy has increased a lot. Their operational activities extend beyond the physical boundaries of their home country. Their international image also builds up their market territory expands, enabling them to become international brands. Thus, these Multi-National Corporations becomes the chief factor behind the Globalization.
Well now, let us draw our focus towards the working mechanism of these MNCs. The following points will give to a brief idea about the operations of the MNCs –
1) Huge Capital Resources: These enterprises are characterized by possessing huge financial resources and ability to raise funds in the domestic as well as in the global market.
2) Advanced Technology: These enterprises possess technological superiority in their methods of production.
3) Foreign Collaborations: Global enterprises usually enter into agreements with any particular country’s company pertaining to the sale of technology; production of goods.
4) Product Innovation: These enterprises are characterized by having highly sophisticated research and development departments.
5) Marketing Strategies: The marketing strategies of global companies are more effective than other companies.
6) Centralized Control: They have their headquarters in their home country and exercise control over all their branches worldwide.
More importantly, we need to understand that these Multi-National Corporations plays a very crucial role in the developing countries, as they not only fulfil the needs of the market but they also help the developing nations by allocating them the upgraded technology for use. They bring along many opportunities with them for a developing economy, since they provide employment to the human force and contributes to the growth and progress of the nation!
The MNCs helps in developing and strengthening the marketing activities all around the world by meeting the demands of the market and supplying those requirements to the consumers globally. In conclusion, it can be said that the Multi-National Corporations leads to the ‘Integration of the World Market!’
Written By NEEL PREET – Author of the Books, Voice From The East (2016); Journey With Time Place And Circumstances (2018) & Indian Defence Files (2021).
