MNC Stages
Stages in the Development of a Multinational Corporation - MNC
Typical stages in the growth of a multinational corporation are as follows
- The domestic firm begins to export its products abroad through middlemen in the home country.
- As sales of products increase abroad, the firm begins to sell directly to an importer located abroad. The firm establishes an export department or division in the home country.
- The firm establishes a sales branch abroad to handle sale:, and promotional work in a given foreign market. The manager of the sales branch is directly responsible to the home office.
- An overseas sales subsidiary is established. It is incorporated in a foreign country and hence enjoys, greater autonomy than a sales branch.
- The firm starts production in the, foreign country through contract, manufacturing or assembly operations.
- A manufacturing facility is established abroad. Now the fain has a subsidiary abroad that, manufactures and sells the product in the foreign -market.
- The subsidiaries or operating units abroad are integrated, the parent company takes strategic, or, policy decisions, for all subsidiaries. The subsidiaries operation undercapitalized planning and control.
MBA- Knowledge Base
الملفات المرفقة
- Stages in the Development of a Multinational Corporation (Stages in the Development of a Multinational Corporation.doc - B)