Multinational company

The business organization having their headquarters in one country but operating branches, factories and assembly plants in others are called multinational companies. These forms actually produce goods and services in more than one country. For example, Lakme Cream is originally produced in England by Unilever Limited but Nepalese girls enjoys using Lakme cream, coca-cola brand it have head quarter in America but all world people can enjoy it.

            The largest multinational have annual sales turnovers exceeding the size of many countries entries budget of government. So, it is obvious that multinationals have their head offices in developed countries such as those o western Europe or the USA. The headquarters of multinational company are known as home companies or parent companies. Similarly, the branches of multinationals are recognized as host companies or subsidiaries of agents. Broadly, multinational companies are called global companies or transnational corporations or super-national companies or multinational enterprise or simply multinationals.

In general, the majority shares of subsidiaries are held by the parent company and the rest by local people or companies. Therefore, the management and fiance of subsidiaries are under the control of autonomy to the subscribes are. In the present globalized age, multinationals are important to eliminate the trade barriers among the friendly country. They are engaged in mass production and distribution of goods and service around the world. IBM corporations, General Electrician, Coca-Cola company Pepsi-Cola company, nestle company, Hitachi,  Dunlop, ford motor corporation Panasonic corporation, wai-wai  noodles, etc. are some example of multinational companies.

Some popular definitions of multinational company are follows:

 *according to book and Remmers,"any firm which performs its main operations either manufacturers or the provision of service of service in at least two countries"

According to David E.Lilenthal "multinational companies are corporation which have their home is one country but operate and live under the laws and customs of other countries as well"

Character of Multinational company

a)    Global operation

b)    Large scale business

c)    Advance technology

d)    Productivity of organization

e)    Mass production and distribution

f)     Huge Management and control

g)    Monopolistic market

Advantage/ important of Multinational company

a)    Transfer of capital and technology

b)    Provide quality goods and services

c)    Crate employment opportunities

d)    Mobilize resources

e)    Increase government revenues

f)     Earn foreign currency

g)     Develop international relation

Disadvantage of Multinational company

a)    Affect the local industry

b)    Disregarded national priorities

c)    Gain a monopoly positions

d)    Risk on national sovereignty

e)    Outflow of foreign currency

f)     Economic exploitation

g)    Unfair employment