A typical multinational corporation comprises a parent company in one state with subsidiaries in one or more other states.
Multinational Corporations operate in the following ways.
Franchising In this form, multinational corporation grants firms in foreign countries the right to use its trade marks, patents, brand names etc. The firms get the right or licence Multinational coorporations operate their business as per the terms and conditions of franchise agreement.
They pay royalty or licence fee to multinational corporations.
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In case the firm holding franchise violate the terms and conditions of the agreement, the licence may be cancelled.
This system is popular for products which enjoy good demand in host countries. Branches In this system multinational corporation opens branches in different countries. These branches work under the direction and control of head office. The headquarters frames policies to be followed by the branches.
Every branch follows laws and regulations of the head office and host countries. In this way multinational companies operate through branches.
Subsidiaries A multinational corporation may establish wholly owned subsidiaries m foreign countries. In case of partly owned subsidiaries people in the host countries also own shares.
The subsidiaries in foreign countries follow the polices laid down by holding company Parent company. A multinational company can expand its business operations though subsidiaries all over the world. Joint Venture In this system a multinational corporation establishes a company in foreign country in partnership with local firms.
The multinational and foreign firm share the ownership and control of the business. Generally, the multinational provides technology and managerial skill and the day to day management is left to the local partner.
Suzuki supplies technology and the day to day management lies with the Government of India. Turn Key Projects In this method, the multinational corporation undertakes a project in foreign country.
The multinational constructs and operates the industrial plant by itself. It provides training to the staff in the operation of plant. It may also guarantee the quality and quantity of production over a long period of time.May 06, · Full list: The Global Companies In Our 13 th annual snapshot of the world’s largest companies shows the dominance of the U.S.
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Such facilities sit on at least $ million worth of land in Texas, according to property records - owned by an array of prominent executives, multinational energy corporations, real estate developers and education company officials.
The EB-1 is a preference category for United States employment-based permanent regardbouddhiste.com is intended for "priority workers".
Those are foreign nationals who either have "extraordinary abilities", or are "outstanding professors or researchers", and also includes "some executives and managers of foreign companies who are transferred to the US".
It allows them to remain permanently in the US. Discussing the positive and negative attributes of multinational corporations (MNCs) - e.g. economies of scale vs monopoly power. How do MNCs affect consumers/workers and economy? The Obama administration is trying to stop corporate "inversions." A closer look at how they work, and what the Treasury is doing about them.