Question

What are the reasons for the growth of MNC?

Answer 1

Expansion of Market: For a large size firm, when its activities expand more and more, it goes beyond its country’s boundary and moves to other countries markets.

Marketing superiorities:

1. An MNC enjoys a market reputation easily.
2. It faces loss difficulty in selling the products.
3. It can adapt very effective advertisement tactics.
4. All these help in their sales promotion.

High level of financial resources:

1. An MNC has a high level of financial resources which helps them in a high level of fund utilization.
2. Easy access to the external capital market.
3. Can raise more International resources to improve their production at any cost.

Advancement in Technology:

1. The High level of technology of the MNCs attracts them to participate in Industrial development.
2. It helps them to offer products at a low price.

Product Innovation:

1. They can develop new products.
2. New Designs of existing products.
3. Designs that help the new generations to apply their knowledge.