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Short Answer Questions · Q5

Q.State any four features of MNCs.

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Any four of the following, with a brief explanation, would answer this question:

  1. Huge size and capital resources — MNCs are usually among the largest companies in the world by assets and turnover.
  2. Operations spread across many countries — they directly set up and run facilities in several host countries, not just sell to them.
  3. Centralised control from a home-country headquarters — overall strategy is still decided at the parent company's head office even though operations are worldwide.
  4. Advanced technology and continuous research & development — MNCs typically bring superior, capital-intensive technology built on sustained R&D spending. …

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