Global enterprises are huge industrial organizations which extend their industrial and marketing operations through a network of their branches in several countries. MNCs as is evident from what we see around us are gigantic organizations/firms which have their operations in a number of countries. They are characterized by their huge size, large number of products, advanced technology, marketing strategies and network of operations all over the world. These enterprises operate in several areas producing multiple products with their business strategy extending over a number of countries. They have an impact on the international economy also. This is evident from the fact that the sales of top 200 corporations were equivalent to 28.3 percent of the world’s GDP in 1998. Therefore, MNCs are in a position to exercise massive control on the world economy because of their capital resources, latest technology and goodwill. These corporations have distinct features which distinguish them from other forms of organization.

Features:

Huge capital resources: These enterprises are characterized by possessing huge financial resources and also the ability to raise funds from different sources. They are also in a position to borrow from financial institutions and international banks.

Foreign collaboration: Global enterprises usually enter into agreements with Indian companies pertaining to the sale of technology, production of goods, use of brand names for the final products, etc. Big industrial houses wanting to diversify and expand have gained by collaborating with MNCs in terms of patents, resources, foreign exchange etc. But at the same time these foreign collaborations have given rise to the growth of monopolies and concentration of power in few hands.

Advanced technology: These enterprises possess technological superiorities in their methods of production. They are able to conform to international standards and quality specifications. Computerization and other inventions have come due to the technological advancements provided by MNCs.