A company that operates on a worldwide scale is called a(n) ____________________.

Airbus is a leader in designing, manufacturing and delivering aerospace products, services and solutions to customers on a worldwide scale.

With around 130,000 employees and as the largest aeronautics and space company in Europe and a worldwide leader, Airbus is at the forefront of the aviation industry. We build the most innovative commercial aircraft and consistently capture about half of all commercial airliner orders. Thanks to our deep understanding of changing market needs, customer focus and technological innovation, we offer products that connect people and places via air and space.

A company that operates on a worldwide scale is called a(n) ____________________.

We are Airbus

Our portfolio and our people

As a proven leader in the global aerospace sector, Airbus designs, produces and delivers innovative solutions with the aim to create a better-connected, safer and more prosperous world.

A commercial aircraft manufacturer, with Space and Defence as well as Helicopters Divisions, Airbus is the largest aeronautics and space company in Europe and a worldwide leader

A company that operates on a worldwide scale is called a(n) ____________________.

Our Worldwide Presence

At home around the world

As a global company with around 130,000 employees around the world, Airbus has business operations located in Europe, the Americas, Africa & the Middle East, and Asia.

A company that operates on a worldwide scale is called a(n) ____________________.

Our Governance

Airbus' Corporate Governance ensures that Airbus is managed according to our Regulating Laws and Articles of Association, and evolves in order to match our growth ambitions, meet our obligations and reach the goals we set ourselves. Our Governance strives to be a transparent body, matching the expectations of the Company’s shareholders throughout the world. 

A company that operates on a worldwide scale is called a(n) ____________________.

Our History

With a 50-year track record of innovation, technological firsts and industry milestones, Airbus is a leader in designing, manufacturing and delivering aerospace products, services and solutions to a customer base that spans the globe – with operations for commercial aircraft, helicopters, defence, space and security.

Take a journey through some of the highlights of our company from the past 50 years, and learn more about Airbus’ continuing success story.

Our vision is for a thriving economy that works for people and planet in the long term. Together, we can tip the balance and achieve this vision.

The work of CDP is crucial to the success of global business in the 21st century... helping persuade companies throughout the world to measure, manage, disclose and ultimately reduce their greenhouse gas emissions. No other organization is gathering this type of corporate climate change data and providing it to the marketplace

Ban Ki-moon, Former Secretary General, United Nations

CDP is a global organization, with regional offices and local partners spanning 50 countries. There are now companies, cities, states and regions from over 90 countries that disclose to CDP.

A company that operates on a worldwide scale is called a(n) ____________________.

A company that operates on a worldwide scale is called a(n) ____________________.

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    A company that operates in its home country, as well as in other countries around the world

    What is a Multinational Corporation (MNC)?

    A multinational corporation (MNC) is a company that operates in its home country, as well as in other countries around the world. It maintains a central office located in one country, which coordinates the management of all its other offices, such as administrative branches or factories.

    A company that operates on a worldwide scale is called a(n) ____________________.

    It isn’t enough to call a company that exports its products to more than one country a multinational company. They need to maintain actual business operations in other countries and must make a foreign direct investment there.

    Characteristics of a Multinational Corporation

    The following are the common characteristics of multinational corporations:

    1. Very high assets and turnover

    To become a multinational corporation, the business must be large and must own a huge amount of assets, both physical and financial. The company’s targets are high, and they are able to generate substantial profits.

    2. Network of branches

    Multinational companies maintain production and marketing operations in different countries. In each country, the business may oversee multiple offices that function through several branches and subsidiaries.

    3. Control

    In relation to the previous point, the management of offices in other countries is controlled by one head office located in the home country. Therefore, the source of command is found in the home country.

    4. Continued growth

    Multinational corporations keep growing. Even as they operate in other countries, they strive to grow their economic size by constantly upgrading and by conducting mergers and acquisitions.

    5. Sophisticated technology

    When a company goes global, they need to make sure that their investment will grow substantially. In order to achieve substantial growth, they need to make use of capital-intensive technology, especially in their production and marketing activities.

    6. Right skills

    Multinational companies aim to employ only the best managers, those who are capable of handling large amounts of funds, using advanced technology, managing workers, and running a huge business entity.

    7. Forceful marketing and advertising

    One of the most effective survival strategies of multinational corporations is spending a great deal of money on marketing and advertising. This is how they are able to sell every product or brand they make.

    8. Good quality products

    Because they use capital-intensive technology, they are able to produce top-of-the-line products.

    Reasons for Being a Multinational Corporation

    There are various reasons why companies want to become multinational corporations. Here are some of the most common motivations:

    1. Access to lower production costs

    Setting up production in other countries, especially in developing economies, usually translates to spending significantly less on production costs. Though outsourcing is a way of achieving the objective, setting up manufacturing plants in other countries may be even more cost-efficient.

    Due to their large size, MNCs can take advantage of economies of scale and grow their global brand. The growth is done through strategic manufacturing/service placement, which allows the corporation to take advantage of undervalued services across the globe, more efficient and inexpensive supply chains, and advanced technological/R&D capacity.

    2. Proximity to target international markets

    It is beneficial to set up business in countries where the target consumer market of a company is located. Doing so helps reduce transport costs and gives multinational corporations easier access to consumer feedback and information, as well as to consumer intelligence.

    International brand recognition makes the transition from different countries and their respective markets easier and decreases per capita marketing costs as the same brand vision can be applied worldwide.

    3. Access to a larger talent pool

    Multinational corporations are also known to hire only the best talent from around the world, which allows management to provide the best technical knowledge and innovative thinking to their product or service.

    4. Avoidance of tariffs

    When a company produces or manufactures its products in another country where they also sell their products, they are exempt from import quotas and tariffs.

    Models of MNCs

    The following are the different models of multinational corporations:

    1. Centralized

    In the centralized model, companies put up an executive headquarters in their home country and then build various manufacturing plants and production facilities in other countries. Its most important advantage is being able to avoid tariffs and import quotas and take advantage of lower production costs.

    2. Regional

    The regionalized model states that a company keeps its headquarters in one country that supervises a collection of offices that are located in other countries. Unlike the centralized model, the regionalized model includes subsidiaries and affiliates that all report to the headquarters.

    3. Multinational

    In the multinational model, a parent company operates in the home country and puts up subsidiaries in different countries. The difference is that the subsidiaries and affiliates are more independent in their operations.

    A company that operates on a worldwide scale is called a(n) ____________________.

    Advantages of Being a Multinational Corporation

    There are many benefits of being a multinational corporation including:

    1. Efficiency

    In terms of efficiency, multinational companies are able to reach their target markets more easily because they manufacture in the countries where the target markets are. Also, they can easily access raw materials and cheaper labor costs.

    2. Development

    In terms of development, multinational corporations pay better than domestic companies, making them more attractive to the local labor force. They are usually favored by the local government because of the substantial amount of local taxes they pay, which helps boost the country’s economy.

    3. Employment

    In terms of employment, multinational corporations hire local workers who know the culture of their place and are thus able to give helpful insider feedback on what the locals want.

    4. Innovation

    As multinational corporations employ both locals and foreign workers, they are able to come up with products that are more creative and innovative.

    Foreign Direct Investment

    Foreign direct investments are prevalent within multinational corporations. The investments occur when an investor or company from one country makes an investment outside the country of operation.

    Foreign investments most often occur when a foreign business is established or bought outright. It can be distinguished from the purchase of an international portfolio that only contains equities of the company, rather than purchasing more direct control.

    Additional Resources

    Thank you for reading CFI’s guide on Multinational Corporation (MNC). To keep learning and advancing your career, the additional CFI resources below will be useful:

    • Articles of Incorporation
    • Board of Directors
    • Economies of Scale
    • Spin-off
    • See all management & strategy resources

    What is a conglomerate quizlet?

    Conglomerate. A giant corporation that owns a collection of companies in different industries.

    What is a multinational corporation quizlet?

    multinational corporation. an entity headquartered in one country that does business in one or more foreign countries.

    Which description best defines a multinational company?

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