Formation of Global Companies Very Short Answer Type Questions

Question 1.
What is multinational corporation?
These companies operates its business in multiple countries. Its managerial head quarters are located in one country while company carries out operations in a number of other countries.

Question 2.
What is turn – key project?
Multinational companies participate in bids or tender invited by the government of host countries for the commissioning and execution of projects, e.g. road way project, railway project dam project, power project etc. It is called as turn – key projects.

Question 3.
Name any four Indian MNCS.

  • Tata motors to take over Daewoo in South Korea.
  • Kirloskar Brothers took over SPP pumps UK.
  • Amtek Auto acquired the GWK group in UK.
  • Ambainis to take over flag international.

Question 4.
What is ethnocentric management style?
It means in MNCs, parent company is taking all the decisions of the company and most of its managerial personnel are home country nationals.

Question 5.
Give the meaning of polycentric management style.
In this method authority and decision making powers are decentralized and its managerial personnel are largely of host countries.

Question 6.
What is geocentric approach in management style of MNCs?
In this method some major decisions are taken by home country management and management personnel in any particular nationality.