In what ways are MNCs different from national companies?
Explain by giving 4 reasons ?

Dear student,

The difference between multinational companies and national companies can be illustrated in following ways:- 

 

MNC's:

1. They operate in more than two countries.

2. They have offices and factories in more than one country.

3. They acquire investments through FDI.

4. Example: Pepsi

 

National companies:

1. They tend to operate in their own country

2. They have their offices in the home country.

3. They invest only in their own country.

4. Example: Wipro

 

 Regards

 

 

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Dear Student,

Foreign trade and foreign investment are essential features of an MNC while they are not in the case of othe companies. MNCs are usually large companies in terms of cost and production while other companies may not be such. MNCs are responsible for the gllobalisation of the economy while other companies are not.

Regards,
Daivik Lakshmipathy.
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