Which of the following is not a feature of a MultiNational Company?a)I...
(D) It employs labour only from its own country.
Some features of MNC's
They base their operations in many different countries upon market demand and availability of cheap labour
They bring huge investments along with modern technology into production. They expand production by buying up local companies or entering into partnership with them.
Which of the following is not a feature of a MultiNational Company?a)I...
**Explanation:**
A multinational company (MNC) is a company that operates in multiple countries and conducts business activities in various locations around the world. MNCs are characterized by their global presence and the fact that they own or control production facilities in more than one nation. They are involved in complex production processes and often set up factories in close proximity to their target markets to enhance efficiency and reduce transportation costs.
However, one feature that does not apply to a multinational company is that it employs labor only from its own country. MNCs typically hire employees from various countries where they operate. They may have headquarters in one country but have subsidiaries, branches, or production facilities in other countries. The workforce of MNCs is usually diverse and multinational, reflecting the company's global operations.
**Reasons why option 'D' is not a feature of a multinational company:**
1. **Diversity in the workforce:** MNCs operate in multiple countries and have a diverse workforce comprising employees from different nationalities. They hire local employees to benefit from their knowledge of the local market, language proficiency, and understanding of local culture. Additionally, MNCs may also hire expatriates from their home country to manage operations in foreign locations.
2. **Global talent pool:** MNCs aim to attract the best talent from around the world to enhance their competitiveness. They recruit skilled professionals and experts from various countries to leverage their knowledge and experience. This allows MNCs to benefit from a diverse range of perspectives and skills, leading to innovation and improved business performance.
3. **Adapting to local conditions:** MNCs understand the importance of adapting to local conditions and adhering to local labor laws. They often provide training and development programs for their employees to ensure compliance with local regulations and to foster a positive work environment. By hiring local labor, MNCs can better understand the cultural nuances and preferences of the target market, which can contribute to their success.
4. **Promoting international cooperation:** MNCs actively promote international cooperation and cultural exchange through their diverse workforce. Employees from different backgrounds collaborate and share their knowledge and experiences, leading to cross-cultural understanding and the development of innovative solutions.
5. **Economic benefits:** MNCs can contribute to the economic development of the countries where they operate by creating job opportunities, transferring technology and skills, and generating tax revenues. By employing local labor, MNCs support the growth of local economies and contribute to poverty reduction and increased standards of living.
In conclusion, employing labor only from its own country is not a feature of a multinational company. MNCs typically have a diverse multinational workforce, which allows them to leverage different perspectives, skills, and experiences to operate globally and adapt to local conditions.