Question

Long Answer Type Questions: Explain the characteristics of global enterprise.

Answer 1

A global enterprise or a multi-national company is a commercial enterprise which has its business operations in two or more countries.

Important features of MNCs are:

1. Wide area of operations: MNCs usually have a wider area of operations spread across two or more countries.
2. Control: MNCs have a centralised control over its subsidiaries or branches. Usually all decisions are taken from the headquarters located at the host country.
3. Advanced Technology: MNCs use advanced and sophisticated technology in their production process.
   
4. Huge wealth: MNCs have huge physical and financial assets. It keeps on increasing with increase in network of operations.
5. Efficient management: MNCs have expert and skillful employees in their teams which help in efficient management.
6. Delegation of power: Appropriate delegation of power is given to fulfill the needs of the host country.