Features, Merits and Demerits of Multinational Corporations Video Lecture | Business Studies (BST) Class 11 - Commerce

now coming to the next topic that is
your multinational corporations also
known as global corporations right now
how do you define multinational or
global corporations simple definition
that organizations which have their
operations in more than one country or
when the operations of an organization
they extend beyond the geographical
boundaries of one country it is called
as or it is said to be known as a multi
national corporation fine they have
their branches in other countries in
addition to the home country to which
they belong they have their branches in
other countries okay which are known as
majority owned foreign affiliates fine
and their main a main aim of the
multinational corporations is to
maximize their profits by opening as
many branches as they can all occur all
over the world right now what are if we
if we come to think of some examples of
the MNCs what would be the examples of
the multinational corporations you have
Cadbury's you have Maruti Suzuki you
have Pepsi you have Coca Cola they all
are the examples of multinational
corporations now let us look into the
features the distinguishing features of
these multinational corporations number
one being huge size of resources fine
they have huge financial resources at
their disposal fine they can easily
raise money by the way of issue of
shares issue of debentures or they can
also you know take money take money from
the capital market and they can get loan
also easily from the financial
institution for a simple reason that
they have a very good credibility in the
market they have a good credibility in
the financial market as a result of it
in coal only inimicable a problem
nayaki fine second one being
international collaborations now these
multinational corporations they enter
into collaborations with the Indian
companies right for sale of technology
production of goods or
use of their brand name fine now in
order to check them the certain
restrictions have been imposed by the
government for by our government
whenever they are entering into a
collaboration with a public sector or a
private sector Enterprise right now
third one beings use of advanced
technology we all know that these
multinational corporations they these
two words we take we take them as going
in hand-in-hand that multinational
corporation means advanced technology
they have they use the best of the
technology fine they use the best of the
technology and as a result latest
technology is used and as a result of
which the best quality products are
produced at the minimum possible price
fine thereby leaving them with a huge
profit margin fine so by using advanced
technology they are able to manufacture
even in here they are able to
manufacture products which conform to
the international standards right then
product this search now before
manufacturing a product take a we all
know that a lot of research work has to
be done and research does not mean only
paperwork a lot of money lot of time lot
of energy goes into this entire process
so these multinational corporations they
have highly sophisticated research and
development department all right so when
they come into other countries they get
along with themselves a proper product
research meth lab before launching a
particular product they their research
and development departments you know
which are so sophisticated a proper
research work is done and who gets the
advantage of that the host country gets
to reap the benefits of that right so
next is marketing strategies now these
companies they have better and more
effective marketing and sales strategy
as a result of which they are able to
increase their sales you know by much
higher
you