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5. Turnkey projects: Underdeveloped countries invite tenders for completion
of certain project requiring high technology. The multinational firm bids and
undertakes the completion of the project from the beginning to the end.

Characteristics of multinational company

i. Mass production and selling: Multinational Company is established with
huge capital and it uses modern and advanced technology. As it has monopoly
and worldwide market, it produces and sells a very large number of goods and
services.

ii. Advanced technology: Multinational Companies use their own special as well
as modern and advanced technology for the production of goods and services.
They also establish separate research and development department and employ
skilled and talented personnel to conduct research and bring innovation in their
production, distribution and for promotion activities. They also transfer such
advanced technologies to developing countries by establishing branches or
affiliates.

iii. Global operation: Multinational Companies operate globally. The parent
company manufactures and sells its products and services through its subsidiaries
established in other countries. Hence, they perform their business at the global
scales.

iv. Ownership and control: The capital for the establishment of MNC for its
subsidiary company is collected from people of the host country as well as from
the parent company. However, the parent company controls the management
and its operation of the branches or affiliated companies through huge capital
investment, technology, trademark, patent, etc.

v. Oligopolistic powers: Oligopoly means power in the hands of few companies
only. Due to their giant size, the multinational companies occupy dominating
position in the market. They join hands with big business houses and give rise to
monopoly. They also take over other firms to acquire huge power and improve
market share.

vi. Centralized control: The branches of Multinational Companies spread in
different countries are controlled and managed from the headquarters situated
in the home country. Headquarters in the home country is the main branch. All
branches operate within the policy framework formed by the headquarters.

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