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Global Enterprises

At some time, you must have come across products manufactured by Multi National Corporations (MNCs). Over the last 10 years, MNCs have played a vital role in the Indian economy. They have become a general feature of most developing countries in the world. MNCs are gigantic corporations from what we see around us, which function in a number of countries. They are featured by their large size, huge number of products, superior technology, marketing approach and operational set up universally. Global enterprises are hence huge industrial bodies that broaded their industrial and marketing operations through a network of their branches in many different countries. Their branches are also known as Majority Owned Foreign Affiliates (MOFA). These undertakings function in many areas manufacturing many products with their business procedure extending over a many countries. They do not look at maximising their profits from one or two products instead expand their branches all over. They have an effect on the global economy too. This is apparent from the fact that the sales of top 200 corporations were equal to 28.3 percent of the world's GDP in 1998. This proves that the top 200 MNCs control over a quarter of the world economy. Hence, MNCs are in a state to exercise immense control on the world economy because of their capital resources, latest technology and goodwill. As a result of this, they are capable of selling any product in various countries. Some of these corporations may be slightly unfair in nature and look into more on selling consumer goods and luxury items which are not always attractive for developing countries.

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