What are the types of MNC’s?


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TYPES OF MNCS: ‐ MAIN THREE TYPES OF MNCS ARE GIVEN BELOW: ‐

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(a)  Transnational Corp.: ‐ Incorporated or Unincorporated enterprises comprising parent enterprises and their foreign affiliates.

(b)  Parent enterprise: ‐ controls assets of other entities in countries other than its home country, usually by  owning a certain equity capital state (usually 10% or more)

 

(c)   Foreign Affiliate: ‐ Is an incorporated or unincorporated enterprise in which an investor, who is resident  in  another economy, owns a stake that permits a lasting interest  in   the   management   of that  enterprise,  A  subsidiary,  associate,  and branches are all referred to as foreign affiliates.

1.                  Subsidiary:  ‐  Is  an  incorporated  enterprise  in  the  host  country  in  which another entity  directly  owns  more  than  half  of  the  shareholding  voting power and has the right to appoint  or   remove  a  majority  of  the  members  of  the  administrative,  management,  or supervisory body.

2.                  Associate: ‐ Is enterprise in the host country in which an investor owns at least 10%

but not more than half of the shareholders voting power.

3.   Branch: ‐ Is a wholly or jointly owned unincorporated enterprise in the host country.

 

 

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We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to contact@bms.co.in.

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