Multinational Company (MNCs)

MNCs

Coca-Cola facts

• 90 million serving of Coke are consumed each day
• Company sells in 200 countries
• Cokes makes so many different beverages that if you drank on per day, it would take you over 9 years to try them all
• 3,500 different beverages
• Coca-colas $35.1 billion in revenue makes it the 84th largest economy in the world

What is a MNC?

• A multinational company is one that operated in more than one country across the world:
• Nike
• Apple
• Dell
• etc....

Characteristics of a MNC

• Huge profits
• HQ in MEDCs
• Large employers

Why operate around the world?

• Bigger market to sell to - more consumers = more profit
• Cheaper labour costs to produce the product in LEDCs so profits are bigger
• Manufacturing your product in the country it is sold reduces transport costs.
• Business conditions - some government offer grants and tax breaks for a firm like Coke to set up in their country.
• Brand status - selling and the advertising that goes with it increases the value of your brand and customer loyalty.