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take the responsibility of marketing the agricultural products too. There are certain
societies who acquire land and distribute to the members for cultivation.
Multinational Company

Multinational corporations are large industrial organizations, which extend their
industrial and marketing operations in a number of countries through a vast network
of branches and/or subsidiaries. They are also called transnational corporations or
supranational corporations. These corporations have their management headquarters
in one country known as home country and operate and live under the values and
customs of other countries known as host countries.

According to H. Jacob - "A multinational corporation owns and manages
business in two or more countries."

According to Rocbock and Simmons, “Multinational company is a large corporation
with operations spread over several countries but controlled by a central headquarter.”

The main objective of multinational company is to operate in a specialized field
covering a large range of products to be sold in various countries. Some of the
multinational companies selling their products in Nepal are Coca Cola, Pepsi, Toyota,
LG, Samsung, etc.
Normally a multinational company (MNC) conducts operations through (1) branches
(2) subsidiary companies, (3) joint venture companies, (4) franchise holders, (5)
turnkey projects.

1. Branches: They are the branches of the parent company incorporated outside the
countries. Such companies are called foreign companies.

2. Subsidiaries: They are incorporated under the law prevailing in the respective
countries and hence owe a separate legal existence. They take advantage of the
financial and managerial skills of the holding company. They sell their products
easily because of the international reputation of the holding company.

3. Joint venture company: A multinational firm joins the hands of a local company
as a matter of convenience or as a matter of legal necessity. Such a management
is called joint venture and it is generally prevalent in countries where the law
stipulates participation of local entrepreneurs.
4 Franchise holders: This is a kind of arrangement of selling under a license taken
from the multinational firms. The multinational firm enters into a contract with
the affiliate firm stipulating one kind of compensation (usually in the form of
royalties) payable to the parent-body.

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