Question -
Answer -
Global enterprises enjoy an upper hand on all other business organisation due to these reasons:
1. Wide market: As the operations of the global enterprises expand among continents they have access to a large geography and resources.
2. Diversifying risk: By operating at different countries and forging joint ventures with organisations of that country, the multinationals can reduce risk, as loss made in one country can be compensated with profit from other country.
3. Funds: As these enterprises have good financial resources, they raise funds from many sources and borrow funds from banks having an international presence.
4. Research and Development: They have a more organised R& D network which is also well funded that makes developing new products quicker than others.
5. Marketing: Global companies have more aggressive style of marketing that drives sales, and they come up innovating marketing techniques that results in high sale volume.