The number of multinational companies seems to be increasing not only in Singapore but also all around the world. MNCs are typically large companies with their headquarters in one country but operate in several countries. Even though this is the only criteria that a company must meet to be considered as a multinational corporation, there are far more important things that these corporations share in common. To understand more regarding multinational corporations, here are two things you probably did not know when classifying an MNC in Singapore.
- Large Operations
Despite the fact that any business having offices in more than one country can be considered to be a multinational corporation, most of them tend to have relatively large operations. For instance, some MNCs in Singapore operate large factories or warehouses in several countries. Of course, these operations require a large workforce and managers. If this is not enough, multinational corporations sign big contracts with different service providers such as accountants and attorneys. So, the next time you find it hard in determining whether a business is Multinational Corporation or not, simply check their operations.
- Trading as a Public Corporation
Just because a company trades publicly, it does not mean that they automatically qualify to earn the name Multinational Corporation. Nevertheless, most MNCs do go public thus making their shares available to investors. The investment money is meant to fund the company, and if the value of shares goes up, the investors get to share the profits. With the important role played by multinational corporations in the stock exchange, they are capable of affecting the economy of an entire nation. You should however keep in mind that a number of multinational corporations are traded in the stock markets of several countries.
Knowing more about multinational corporations will help you big time especially when you want your small business to become MNC in Singapore. However, you need to have clear business plans not forgetting the capacity to expand your operations, business reach and staff. The good news is that technological inventions and the internet have opened the world of multinational corporations to different businesses. Nowadays, small businesses can compete at a global marketplace, by making sales online or simply connecting remotely to different parts of the world. Either way, multinational corporations still play an important role in the economy of a country.