Question

Explain the features of multinational company and give examples of multinationals operating in India.

Answer 1

The main characteristics of multinational companies are as follows:

1. A multinational company operates in two or more countries simultaneously.
2. It is generally very large in size.
3. Its goal is to lower trade costs while utilising foreign countries, labour, raw supplies, and capital.
4. Multinational companies allow local operations through branches in host nations while maintaining centralised authority in their home country.

Pepsi Corporation, Coca Cola Corporation, Philips, General Electric (GE), Hindustan Unilever, and Sony are some examples of multinational companies operating in India.