How have multinationals developed and what are the benefits of becoming a multinational company?
Understand the Problem
The question discusses the importance and benefits of growth for multinational companies, including economic advantages and market profiles. It highlights factors contributing to multinational development like economies of scale, marketing, and technical superiority.
Answer
Development via economies of scale, marketing, technical/financial superiority. Benefits: larger customer base, lower costs, higher profile.
Multinationals have developed through economies of scale, marketing, and technical/financial superiority. Benefits include access to a larger customer base, lower costs through economies of scale, and a higher company profile which can enhance brand recognition.
Answer for screen readers
Multinationals have developed through economies of scale, marketing, and technical/financial superiority. Benefits include access to a larger customer base, lower costs through economies of scale, and a higher company profile which can enhance brand recognition.
More Information
Multinationals leverage global expansion for improved efficiency, cost savings, and organizational strength by spreading operations worldwide.
Tips
A common mistake is not accounting for local market variations when planning multinational operations.
Sources
- Reasons for Being a Multinational Corporation - corporatefinanceinstitute.com
- What Is a Multinational Corporation? (With Benefits) - Indeed - ca.indeed.com
- Benefits of being a multinational company - Economics Help - economicshelp.org
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