Characteristics of MNCs
1. Each geographical region has a senior operating executive
in charge, reporting to the Managing Director who is responsible for overall
co-ordination.
2. Senior staff set and control policy in their respective
functional areas.
3. Each region operates as a profit centre within the MNC
and the home office is an international profit centre.
4. Finished products and components are often transferred
between regions on an inter-company basis.
5. The home office furnishes the other regional companies
with technology, information and communication systems.
6. There is co-ordination so that duplication of functions
does not occur.
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