Explain the features of Transnational Corporations.
FEATURES OF TNCs
The main features of TNCs are as follows:
i) TNCs are normally very large in size as measured by the value of their total salw.
The average TNC has billions of US dollars as its total sales value which is often
equivalent to more than the national incomes of one, two or three large developing
countries. In the eighties, and nineties, however there has been a growth of smaller
TNCs from Canada. Japan and the UK. Even the USA has now some small TNCs.
ii) Many TNCs depend to a large extent on their foreign sales. There has been a steady
growth of the share of foreign sales in total sales. Sales of TNCs exceed the value of
world trade in goods and services.
iii) TNCs are multi product enterprises something that gives them tremendous market
power.
iv) ,The main strength of TNCs is their command of technology and innovation. They
spend sizable amount on research and development( R & D). Most TNCs spend 5-6
percent of their soles value on R &
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