Question

What is the objective of an MNC?

Discuss the aims of multinational companies (MNCs).

Answer 1

1. Maximising the profits: To obtain the highest possible profit, as they invest large sums of money.
2. Expand business: Multinational companies allow operators to expand operations and derive profits from multiple countries. These corporations expand business beyond the boundaries of home country.
3. Minimising the cost: To minimise the cost of production, especially the labour cost.
4. Competitive advantage: To capture lucrative foreign markets against international competition and avail competitive advantage internationally.
5. Greater efficiency: MNCs work to achieve greater efficiency by producing in the local market and then exporting the products.
6. Corporate image: To establish an international corporate image.