Top MNCs in India

IBM
IBM stands for International Business Machine is the first Multinational Company. It produces
and markets computer hardware and software and conjointly consulting services and offers
infrastructure, hosting and consulting services in fields starting from mainframe computers to
nanotechnology.
IBM Recruitment
Tech Mahindra
Tech Mahindra Limited is associate Indian international supplier of information technology (IT),
networking technology solutions and business support services (BPO) to the telecommunications
trade.
Tech Mahindra Recruitment
TCS
Tata Consultancy Services Limited (TCS) is associate Indian international info technology (IT)
service, consulting and business Solutions Company.TCS functions in forty six countries. The
corporate provides consulting-led integrated portfolio of IT and IT-enabled services.
TCS Recruitment
Accenture
Accenture plc is an international service industry, technology services, and outsourcing company.
Its the world's largest consulting firm as assessed by revenues. Accenture collaborates with
purchasers to assist them become superior businesses and governments.
Accenture Recruitment
Wipro
Wipro Limited (Western India Products Limited) is an international IT Consulting and System
Integration services company. Wipro is wordly recognized for its innovative approach towards
delivering business worth and its commitment to sustainability.
Wipro Recruitment
Infosys

Infosys is an international leader in consulting, technology, and outsourcing solutions. The

enterprises remodel and thrive in a very dynamic world through strategic consulting, operational
leadership, and therefore the co-creation of breakthrough solutions, together with those in
quality, property, big data, and cloud computing.
INFOSYS Recruitment
Genpact
Genpact is shorthand for generating business impact. Genpact is a international business
process outsourcing and information technology services company that provides accounting,
funding & client service etc.
Genpact Recruitment
HCL
HCL Technologies Limited is an Indian international IT services company. It offers services
together with computer code consulting, enterprise transformation, remote infrastructure
management, engineering and R&D services, and BPO. HCL has been one in all fastest growing
technology firms not solely in India however within the world.
HCL Recruitment
HP
Hewlett-Packard Company or H.P is a international info technology corporation. It provides
hardware, computer code and services to customers, small- and medium-sized businesses
(SMBs) and enormous enterprises, together with customers within the government, health and
education sectors.
HP Recruitment
Capgemini
Capgemini is one of the world's foremost suppliers of consulting, technology and outsourcing
services. Present in forty four countries with quite large staff, the Capgemini Group helps its
clients transform so as to enhance their performance and competitive positioning.
Capgemini Recruitment
Cognizant
Cognizant India is one of the most important international delivery centers of cognizant
Technology Solutions and plays a big role in business outsourcing services excluding providing
services like consulting and IT-related solutions

Cognizant Recruitment
L&T Infotech
L&T Infotech (Larsen & Toubro Infotech), a subsidiary of L&T (Larsen & Toubro), is an
international IT services company primarily located in Mumbai, India. The corporate has thirtynine registered offices in twenty two countries. Its one of the most important and most revered
firms in India's private sector. L&T believes that progress should be achieved harmonic with the
environment.
L&T Recruitment
Multinational companies recruit talented contenders form every field whether it is engineering,
management, research, information technology, communication technology, infrastructures, etc.
They provide exciting career opportunity and an environment to move towards success,
so MNCs could be the great way to start your career.

About Multinational Companies

In turn, India also derives a lot of benefits from MNCs such as higher level of investment,
reduction in technological gap, optimum utilization of natural resources, reduction in foreign
exchange gap and boost to basic economic structure. But roses do not come without thorns.
So there are certain disadvantages of having MNCs in a developing country like India like
competition to SMSI, increased pollution and environmental hazards, improper diffusion of
profits and Forex imbalance, slow decision making and sometimes economic distress. But these
dont overcome the gains of having MNCs.
With just a few days left for the announcement of the Union Budget 2016, a survey has found
that the youths desire to work in startups has increased from 8% to 14%. While half of the
respondents conveyed their intention to start their own company, a marginal students actually
didnt have any idea as to how to take the ideas forward. Therefore, a majority of students
looking for stable job opportunities would want to work with an MNC or some SME.
In India, a large number of MNCs are operating. So, here we have compiled a list of a couple of
major MNCs in India:

List of Top 10 MNCs

Microsoft Corporation
Nestle
Procter and Gamble
PepsiCo
Sony Corporation

Nokia Corporation
Coca Cola
International Business Machines (IBM)
Sun Pharmaceutical
Citigroup

Microsoft Corporation
In 2014, the total revenue of Microsoft Corporation was US$ 86.83 billion and its operating
income was US$ 27.76 billion. Its net income stood at US$ 22.07 billion and its total assets were
worth US$ 172.38 billion. Its total equity in that year was US$ 89.78 billion. As of June 2014, it
had 1,28,076 employees.
Its major products and services can be enumerated as below:
Windows
Surface
Office
Mobile
Servers
MSN
Skype
Bing

Visual Studio
OneDrive
Dynamics
MSDN
Azure
Outlook
Xbox
TechNet

On 29 December, 2015 Microsoft India- the Indian subsidiary of the legendary American
software company Microsoft Corporation signed a MoU(Memorandum of Understanding) with
the Government of Andhra Pradesh on an extensive range of technology initiatives. While
Microsoft CEO Satya Nadella represented Microsoft Corporation, the Andhra Pradesh
government was represented by the states chief minister N. Chandrababu Naidu. Recently,
Microsoft Corporation has partnered with Indias fourth largest software services exporter HCL.
The two companies have decided to launch an incubation centre for the Internet of Things (IoT).

Nokia Corporation
The company was founded at Tampere, the Grand Duchy of Finland in 1865 by Leo Mechelin
and Fredrik Idestam. Its Chairman is Risto Siilasmaa and its President and CEO is Rajeev Suri.
Timo Ihamuotila serves as its CFO. In 2014, its revenue stood at 12.73 billion and its operating
income was 1.63 billion. In the same year, its net income was 1.17 billion and its total asset
worth was 21.06 billion. Its total equity for that year was 8.67 billion.

On 11 February 2016, Nokia and IIT-Madras announced a three-year partnership to explore the
possibility of using unlicensed radio spectrum to deliver broadband connectivity. Nokia
Corporation has shown its willingness in funding the project through its Corporate Social
Responsibility research programme for rural development. Plus, the MNC would provide
technological expertise to IIT-Ms Centre of Excellence for Wireless Technology (CEWiT).

Nestle
Nestle is one of the top names in the world of food and beverages across the world. Its focus is
on providing the very best in healthful and tasty food segment to its consumers all over at each
and every stage of their lives and at any time they please. It has been in existence for more than
140 years and operates in at least 197 countries. In 2014, it earned CHF 91.6 billion in sales. Its
operating income for that year was CHF 10.90 billion and it earned profits of CHF 10.02 in
2013. In 2013, its assets were worth CHF 120.44 billion and its total equity was CHF 64.14
billion. It employed 3,39,000 people in various capacities in 2014. Its objective is to be the top
name in the world of nutrition, wellness and health.
The company was founded by Henri Nestle, George Page and Charles Page as Anglo-Swiss
Condensed Milk Company in 1866. Its head offices are at Vevey in Vaud, Switzerland. At
present, its Chairman is Peter Brabeck-Letmathe, its CFO is Wan Ling Martello and its CEO is
Paul Bulcke. It has more than 2,000 brands across the world in the following product segments
and more:
Baby Food
Confectionery
Coffee
Bottled Water

Dairy Products
Ice Cream
Breakfast Cereal
Pet Food

Coca Cola
One of the leading global brands in beverages, Coca Cola offers its complete portfolio of
products in India with drinks, energy drinks, juices, tea, packaged water and coffee. Coca Cola
offers more than 3,500 beverages around the world. It employs 25,000 people for system-related
operations in India. It also has 1,50,000 indirect employees. Together with its franchisees, Coca
Cola has 56 bottling plants in India. In addition, it has 21 contract packers that make various
products for the company. In its 35 years of existence in India, Coca Cola has done well
financially and played a major role in the economic growth of India. It has also played a major
role in the innovation that has taken place in the countrys beverage sector.
Coca Cola was founded in 1886. The company was established by Asa Griggs Candler and

Candler and John Pemberton created the beverage. Its head offices are in Atlanta, Georgia.
Muhtar Kent serves as its CEO and Chairman and Ahmet Bozer is its Executive Vice President.
In 2013, its revenues stood at US$ 46.854 billion and its operating income was US$ 10.228
billion. Its net income in the same year stood at US$ 8.584 billion and its total assets were worth
US$ 90.055 billion. Its total equity stood at US$ 33.44 billion. As of December 2013, the
company had 1,30,600 employees.

Procter and Gamble

Procter and Gamble is one of the top names as far as consumer goods are concerned. It was
founded in Cincinnati, Ohio, on 31st October 1837 by William Procter and James Gamble. Its
head offices are located in Cincinnati. It operates all over the world with the exception of Cuba.
Alan George Lafley is its Chairman, CEO and President.
P&G India is a part of Procter and Gamble. It is one of the leading FMCG companies in India in
terms of growth. It was started in 1964 and caters to more than 650 million people across the
country. It operates in a wide array of segments such as beauty and grooming, health and wellbeing and household care. Its major brands may be enumerated as below:
Vicks
Pampers
Ariel
Pantene
Tide
Oral-B
Whisper

Head & Shoulders

Olay
Wella
Gillette
Duracell
Ambi Pur

P&G has been able to carve out a dominant position for itself in most of the product categories
by the dint of its technological innovations and product propositions. It has also professed a
commitment to achieving sustainable growth, social responsibility through community
development and environmental protection in India. At present, it has more than nine contract
manufacturing sites and five plants across India. It has 26,000 direct and indirect employees. It
also has three business entities in India. One of them is the wholly-owned subsidiary of Procter
& Gamble Home Products, which is the parent company based in the U.S. The others are Gillette
India Limited and Procter & Gamble Hygiene and Health Care Limited.
In 2014, Procter and Gamble earned revenues of US$ 83.06 billion and its operating income
stood at US$ 15.29 billion. Its net income for the year was at US$ 11.64 billion and its total asset
worth was US$ 139.26 billion in 2013. In 2013, it had 1,21,000 employees all over the world.

IBM

IBM or International Business Machines Corporation is a leading name in the world of computer
hardware, software and IT consulting. It was founded by Charles Ranlett Flint in Endicott, New
York. At present, its head offices are in Armonk, New York. It operates across 170 countries.
Ginni Rometty serves as its Chairman, CEO and President. In 2014, it earned approximate
revenue of US$ 92.793 billion and its operating income was US$ 19.996 billion. Its net income
in the same year was US$ 12.023 billion and its total assets were worth US$ 117.53 billion. Its
total equity was worth US$11.868 billion. It has 3,79,592 employees.

PepsiCo
One of the top names in the world of beverages, PepsiCo is headquartered in Purchase, New
York. It was founded in 1896 at New Bern, North Carolina by Donald Kendall and Herman Lay.
At present, its products, including its most famous brand Pepsi and its chips, can be found all
over the world including India. Its present CEO and Chairman is Indra Nooyi. In 2013, its
revenue amounted to almost US$ 66.415 billion and its operating income was US$ 9.705 billion.
Its net income in the same year was US$ 6.74 billion and its total assets were worth US$ 77.478
billion. Its total equity in 2013 stood at US$ 24.389 billion. In the same year, it had 2,74,000
employees.

Sun Pharmaceutical
Sun Pharmaceutical is probably one of the leading pharmaceutical companies of India. It was
founded in 1983 by Dilip Shanghvi and its head offices are in Mumbai. At present, its Chairman
is Israel Makov and Dilip Shanghvi operates as the Managing Director. Apart from
pharmaceuticals, it deals in generic drugs. In the 2013-14 fiscal, it earned revenue of US$ 2.6
billion and its operating income was US$ 1.1 billion. In the same period, its net income was US$
900 million and the aggregate worth of its assets was US$ 2.2 billion. In the 2013-14 fiscal, its
total equity stood at US$ 4.7 billion. As of March 2015, it had 32,700 employees.

Sony Corporation
This multinational conglomerate was founded on 7th May 1946 in Tokyo by Akio Morita and
Masaru Ibuka. At present, its headquarters are in Minato, Tokyo and its European head offices
are in Surrey, England. It operates around the world including locations such as the following:
Yokohama
Cranston
Toyama
Philadelphia
Osaka
King of Prussia
New York City

Pottstown
Mount Laurel
Edison
Teaneck
Berlin
Huntington Station

At present, its President and CEO are Kazuo Hirai and Osamu Nagayama, the Chairman of the
Board. It operates in a wide range of product and service segments such as the following:
Consumer Electronics
Financial Services
Semiconductors
Insurance
Video Games
Banking

Media/Entertainment
Credit Finance
Computer Hardware
Advertising Agency
Telecom Equipment

In 2014-15, it earned revenues amounting to 8.215 trillion and its operating income stands at
68.5 billion. Its net income in the same fiscal stands at 126 billion and its total assets are worth
15.834 trillion. Its total equity for the year stands at 2.317 trillion. As of 31 March 2015, it had
1,31,700 employees.

Citigroup
Citigroup is one of the leaders when it comes to financial services and banking. It was founded
on 16 June 1812 and its predecessors were Travelers Group and Citicorp. Its head offices are in
Manhattan, New York. It operates around the world. Its CEO is Michael L. Corbat and its
Chairman is Michael E. ONeill. It offers a number of products such as the following:
Credit Cards
Global Wealth Management
Consumer Banking
Financial Analysis

Corporate Banking
Private Equity
Investment Banking

In 2014, its revenue was US$ 76.88 billion and its operating income was US$ 14.36 billion. Its
net income in the same year was US$ 7.31 billion and its total assets were worth US$ 1.89
trillion. Its total equity for that year stood at US$ 210.5 billion. In the same year, it had 2,43,000
employees. Following are its major subsidiaries:
Citibank India
Citi Securities & Banking
Banamex
Nikko Citigroup
CitiMortgage
Railmark Holdings

Citibank
Salomon BIG
Citi Branded Cards
Sedna Finance
Citi Private Bank

- See more at: http://business.mapsofindia.com/indiacompany/multinational.html#sthash.ThOWOsnF.dpuf

Top IT companies in Pune

April 21, 2016 Software

Here is a list of top 10 IT companies in Pune; these are the best companies in Software and
Information technology sector based at Pune, India. And ranking process of the best Information
technology companies is frequently being updated by our expert team.

1 | Tata Consultancy Services

Office First Floor, Godrej Millenium 9, Pune | Turnover 11.66 Billion Dollar |
Employees 275000+ | Business IT,Business Consulting and Outsourcing |
Sector Private Sector | Career Website www.careers.tcs.com
When it comes to IT companies, it is one of the surest wonder if the name of TCS or Tata
Consultant Services, doesnt come up, highly reputed as one of the best companies in the field of
IT companies, the company is also among the top IT companies in Pune. The company has
throughout been a leader in the trade.

2 | Wipro Limited
Office Fergusson College Rd, Pune | Turnover 6.88 Billion Dollar |
Employees 140000+ | Business IT, Business Consulting and Outsourcing |
Sector Private Sector | Career Website careers.wipro.com
When a company posts a turn over of 7.6 billion dollar for a single year, then honestly there is
just no way one can ask about the authenticity of the company or the reputation and the
importance that it holds among the people of any nation or the entire surface at large. Wipro is
one of the most essential multi national company located in and around Pune.

3 | Infosys Limited
Office Rajiv Gandhi Infotech Park, Hinjawadi, Pune | Turnover 7.4 Billion Dollar |
Employees 155000+ | Business IT, Business Consulting and Outsourcing |
Sector Private Sector | Career Website www.infosys.com/careers
With their clients settled in more than 50 countries across the world, the company surely must
have the powers to convince and woo its customers with the best support and satisfaction that

one can possibly think of. There are quiet too many offices located of this famous company in
most of the urban and developed cities in India.

4 |Cognizant Technology Solutions Corp.

Office The Quadron Hinjewadi, Pune | Turnover 7.35 Billion Dollar |
Employees 16200+ | Business IT, business consulting and outsourcing |
Sector Private Sector | Career Website www.cognizant.com/careers
One of the finest technology company in world market has also setup a office in this city. The
pioneer IT group is engaged in Information technology, Consulting and outsourcing business. it
has over 16K employees working all across the globe.

5 | Veritas
Office Khadki, Pune| Turnover 2 Billion Dollar |
Employees 7000+ | Business IT, Business Consulting and Outsourcing |
Sector Private Sector | Career Website www.symantec.com/about/careers
Symantec Enterprise is the company that is set up around Pune and is also one of the top Reputed
IT Companies in Pune, or the best information technology venture in the area. The company has
come up with various ways and policies that would simply and surely help the clients at large
and that is the reason it has been able to gain such importance from the clients at large.

6 | Tech Mahindra Limited

Office Sharada Center, Pune | Turnover 1.15 Billion Dollar |
Employees 50000+ | Business IT, Business Consulting and Outsourcing |
Sector Private Sector | Career Website careers.techmahindra.com
Tech Mahindra, an extension of the Mahindra group is here to help you with all your IT related
problems. All the you would ever need is to just help yourself with the best and the most popular
company and be free from all the IT related problems. The company is by far rated as the one
that would simply make the IT industries a better place and are a revolution to the field.

7 | Capgemini
Office Sangamvadi, Pune | Turnover 10.2 Billion Dollar |
Employees 125000+ | Business IT and Business Consulting |
Sector Private Sector | Career Website www.in.capgemini.com/careers
Capgemini with its group of dedicated officials and the perfect combination of youth and
experience seems to be all well equipped to help you out of any problem in the fields of ID

department if you are facing any. The company is one of the leaders in the trade and has excelled
in practically every field that the company has to offer to the clients.

8 |Xansa
Office Talawade, Pune | Turnover 500 Million Dollar |
Employees 8600+ | Business IT and Outsourcing |
Sector Private Sector | Career Website www.steria.com/careers/
Sopra Steria is a group of companies that is a job provider for 37000 peoples across all the
nations that it is effective in. The company is the one stop solution to their clients need in the IT
Department. The company comes handy in perfectly all of the fields stated. Thus the company
not only is trustworthy, but is also efficient in every possible problem aroused in a client
company or firm.

9 | Larsen & Toubro Infotech

Office Shivaji Nagar Pune | Turnover Unknown |
Employees 15000+ | Business IT Services and IT Consulting |
Sector Private Sector | Career Website www.lntinfotech.com/careers
L&T Infotech, owned by the well known Larsen and Tubro. The company is also one of the
many companies that are located around Pune, but it is as you would say the one that has one of
the highest amount of popularity among all the companies and firms available.

10 | Suma Soft Pvt Ltd

Office Erandawane, Pune | Turnover 650 Million Dollar |
Employees 500+ | Business IT, Business Consulting and Outsourcing |
Sector Private Sector | Career Website www.sumasoft.com/send-profiles-to.htm
Suma Soft, this is another of the top IT firms based in Pune. The firm is also rated as among the
top 10 IT Companies in Pune. The company with its prominent and dedicated set of employees is
just too well settled to be among the top 10 IT Companies in Pune. There are also ways in which
the company helps the clients, along with the 24*7 facility, there are also quite many other
facilities that they have over other companies in the same field.

multinational corporation (MNC)

An enterprise operating in several countries but managed from one (home) country. Generally,
any company or group that derives a quarter of its revenue from operations outside of its home
country is considered a multinational corporation.
There are four categories of multinational corporations: (1) a multinational, decentralized
corporation with strong home country presence, (2) a global, centralized corporation that
acquires cost advantage through centralized production wherever cheaper resources are
available, (3) an international company that builds on the parent corporation's technology or
R&D, or (4) a transnational enterprise that combines the previous three approaches.
According to UN data, some 35,000 companies have direct investment in foreign
countries, and the largest 100 of them control about 40 percent of world trade.
Read more: http://www.businessdictionary.com/definition/multinational-corporationMNC.html#ixzz4BTdw0h14
Read more: http://www.businessdictionary.com/definition/multinational-corporationMNC.html#ixzz4BTdj1RcW

The concept of multinational company is the outcome of the development of the

mutual cooperation among friendly nations, development of new technology, mass
production and the development of global economy. Generally, a company that
performs its business in tow or more countries is a multinational company.
Multinational companies are incorporated in a country but they perform their
business in many countries of the world. Especially, they perform business
operations throughout the world through their branches, subsidiaries or agents. The
business activities are managed and controlled by the head office of the company
which is situated in the mother country.
Multinational companies involve in mass scale production and distribution of specific
products. They involve in mass production by taking the scope of distribution at the
international level. The equity capital of the subsidiaries or branches is contributed
by both the people of the host company and the parent company. However,
management and control of the branches is done according to the system of the
parent company.

Therefore, we may conclude that a multinational company is corporation which

performs business at the international level under its ownership, management and
control.

At present, multinational companies are being taken as an important aspect which

helps eliminate the trade barriers among friendly nations. The development of the
free market economy concept at the international level helps large scale
manufacturing to enter the international market without much hassles. Therefore,
many multinational companies are established in the world especially in developing
countries. The world body brings global economy into, one foundation to some
extent. This contributes more to promoting business activity of multinational
companies throughout the world without any administrative barriers. The United
Nations recognizes around 650 companies or corporation as multinational
companies in the world, whose transactions were above a certain level specified by
the UN. Some of them are:

IBM corporation, United States of America (USA)

General electric, United States of America (USA)

Mercedes Benz car company, Germany

Coca Cola Company, United States of America (USA)

Pepsi Cola Company, United States of America (USA)

Nestle Company, Switzerland

Hitachi, Japan

Dunlop, United Kingdom (UK)

Ford Motor Corporation, United States of America (USA)

Panasonic Corporation, Japan

Characteristics of Multinational Company

Large scale operation
Large scale operation in the most important feature of a multinational company. It
performs large scale business operation by investing a huge capital. And it also
performs activities in large scale, like production, distribution, organization,

employees and promotional activities. The large scale production minimizes per unit
cost and helps to face competition in the market.
Advanced Technology
Advancement in modern science and technology is one of the major features of a
multinational company. Multinational companies establish research and
development departments for the research and invention of new technology in
production, distribution and for promotion of business activities. Monopoly is new
scientific technology is one of the main reasons for the development of some
multinational companies. Such multinational companies can get easy entry in
developing countries. They also transfer new technology in to developing countries
through their branches and subsidiaries which are helpful for industrialization
International operations
One of the important features of a multinational company is its operation in two or
more countries. It performs production and distribution activities at the international
level through its branches or subsidiaries. Examples companies are coca cola, IBM,
National Panasonic, Toyota, Pepsi Cola etc.
Efficient management
Efficient management is one of the main reasons for the successful operation of a
multinational company. It hires efficient and skilled manpower. It has the capacity to
hire professional by paying high remuneration. It also blends technology and
manpower to give better management. It is thus essential for their successful
operation.
Ownership and control
The ownership of multinational companies remains both with the parent company
and the subsidiary company. However, major shares of the subsidiary companies
established in various countries are contributed by the parent company. Therefore,
the parent company plays a major role in the management and control of the
subsidiary companies.
Productive organization
Multinational companies are known as productive organizations. They produce
goods and services of a specific nature both in the parent company and the
subsidiary companies in various countries. This is done to spread their products at
the international level. The parent company uses its own technology, brand,
trademark and method of production.
Monopolistic market

The product specialization and efficient management system of multinational

companies contribute to developing their monopoly power even in a competitive
market. The use of latest technology, own trade mark, goodwill, along with better
distribution system and promotional network are the main components of
multinational companies.

Types of Multinational Company

Raw material seekers
These are the earliest forms of multinational companies. These multinational
companies spread in different parts of the world in search of raw materials. They
purchased the best raw materials from local markets in the cheapest price,
processed the raw material locally and delivered them in their home country for
production of finished products. In the colonial era, multinational companies of
Western European countries exploited maximum raw materials found in many
overseas countries. The present multinational companies involves in raw material
dealing are crude oil, gas and mining companies. These companies purchase raw
materials from the international market and deliver them to their home country for
processing.
Market seekers
These are common types of present day multinational companies. They enter the
foreign market to produce and sell their products. The main motive of such
multinational companies is to expand their business at international level. Import
restriction policy of some countries also encourages multinational companies to
operate production and selling activities in those countries. At present many
multinational companies of the USA, Japan and other developed countries have
started investing in India and China by considering the huge market.
Cost Minimizer
These multinational companies seek to invest in countries where the production
cost is low. The main motive of such companies is to minimize cost of produce and
service. They install plants in the countries where labor and energy cost is low. This
helps to meet the purchasing power of customers of host countries. For examples,
many Japanese companies like Sony, Toyota, National Panasonic, Honda, Suzuki etc.
have established their production plants in China, India, Malaysia, Singapore,
Taiwan, Thailand etc. This is helpful in minimizing cost of Japanese branded products
because comparatively these countries have low labor and energy cost.

Advantages of Multinational Company

At the beginning, the concept of multinational company was introduced in western

countries. The liberal economic and trade policy in developing countries at the end
of the 20th century facilitated multinational companies to invest in developing
countries.
Huge capital and modern Technology
Investment of huge capital and introduction of modern technology is the host
country is one of the most important advantages of a multinational company. It
helps to minimize the scarcity of capital in the host country. Similarly, modern
technologies are introduced in production of goods and services. Therefore,
multinational companies contribute to resource mobilization and technology
development for the economic prosperity of the host country.
Mass qualitative products
The main advantages of multinational company is that is produces goods at a larger
scale. It maintains international standard in its products and services. It lays
emphasis on quality. For mass and quality production, it mobilizes skilled and
efficient manpower and modern technology.
Efficient management
The success or failure of an organization totally depends on its management
system. Multinational company gives priority to efficient and up to date
management system. For this, it hires skilled and technical employees and
introduce modern system of management. In other words, the main reason behind
the success of multinational companies is their efficient management system.
Minimum cost of production
The huge investment and mass production helps to minimize per unit cost of
products because the fixed cost remains constant at any level of output. Therefore,
a multinational company lays emphasize on mass production of goods and services.
Such technique helps minimize the per unit cost of production and can supply
quality products in the competitive market. The customers of the host country are
benefited by quality products in minimum cost.
Research and development
Research and innovation is essential for the development of an organization.
Research and investigation help discover new knowledge and ideas. These
innovations and discoveries help in introducing new products, services, and
knowledge. Multinational companies give importance to research and development.
Investment in research and development in the main reason for the success of
multinational companies.

Employment opportunities
Multinational companies are important sources of employment. They provide
employment opportunities to the people of host countries both in the administrative
and technical jobs. People can get employment opportunity in production process,
financial activities, management and promotional works.
Maximize government revenue
Multinational companies contribute more to the increment in government revenue.
They involve in mass production and distribution activities throughout the country.
As a result, they earn more profits and pay income tax, Besides income tax,
multinational companies pay various taxes to the government like value added
tax, export duty etc.
Elimination of trade barriers
Multinational companies play important roles in eliminating trade barriers and
obstructions in international trade. Multinational companies perform business under
an efficient management system using the latest technology and sell quantity
products at moderate price. As a result, they put pressure on the authorities oh host
countries to eliminate the trade and other administrative barriers. Free and open
trade is beneficial both for multinational companies and to the host country. Thus,
multinational companies are playing an important role for the development of global
economy.
Maintain balance in trade
Multinational companies contribute to maintaining balance in international trade of
the host country. They introduce products in host countries which may substitute for
import. This helps minimize import from foreign countries and can save foreign
currencies. Similarly, surplus products of subsidiaries of multinationals can also be
exported to foreign countries. Therefore, multinational companies helps to maintain
a balance in trade of the host country.
International cooperation
Multinational companies play important role in the development of mutual
cooperation among various countries of the world. Today, international relation and
cooperation is based on financial assistance and economic development. For this,
multinational companies contribute more in developing mutual cooperation among
friendly nations. The establishment of a multinational company is beneficial both to
the host and guest countries. Hence, multinational companies are important media
of international cooperation.

Disadvantages of Multinational Company

The main objective of the establishment
maximum profit by supplying goods and
country. Similarly, multinational company
scale by using modern technology. As
entrepreneurs suffer a lot.

of a multinational company is to earn

services to the customers of the host
produces goods and services at large
a result, the host country and its

Displacement of local industries

Displacement of local industries is the major disadvantages of a multinational
company. Local industries cannot compete with multinational companies because
the later produce goods and services at a larger scale by using modern technology.
Medium and small scale cottage industries of the host country are either displaced
or they surrender to the multinational companies. Multinational companies have a
negative impact on local industries and the economic and the economic
environment of the host country.
Outflow of capital
Generally, in the initial stage, multinational companies bring in huge capital in the
host country. They invest capital for establishment of plants and to manage working
capital. But, as professional business concerns, their main objective is to earn
maximum profit. Therefore, in the long run, multinational companies earn more
profit by implementing their efficiency and network. They transmit huge profit to
their parent country after the payment of necessary taxes. As a result, more money
will flow out from the country in terms of dividend which decreases foreign
exchange reserve of the country. It creates a shortage of foreign currency reserve in
the host country.
Economic exploitation
To earn maximum profit, a multinational company utilizes raw materials and labor
force of the host country at a cheaper price. It means, it purchases raw materials at
a minimum cost. Similarly, it pays minimum wages to employees as compared to
employees of the parent country. But, it charges a high price for the finished
products by using its own brand name. Therefore, developed countries economically
exploit the developing countries through multinational companies.
Consumer exploitation
Multinational companies enjoy monopoly in the market. They capture the market by
using various techniques like developing network for promotion, product
differentiation, maintaining brand image and fame etc. They charge any price for
the products and exploit customers by charging a huge price.
Inequality to staff

A multinational company appoints staff both from the parent country and the host
country. It hires higher level authority from the parent country and their
remuneration, allowances and other facilities are also high. However, it appoints
lower level employees from the host country who are paid less remuneration and
facilities. Besides, there is also discrepancy in remuneration and facilities of two
employees of the same level but from two different countries. Therefore, a
multinational company treats the local employees as second grade citizens by
providing minimum remuneration and allowances.
Inappropriate technology
Technology transfer to the host country is one of the parts of a multinational
company. But in practice, a multinational company hardly transfer advanced
technology. It hands over only outdated or inappropriate technology to the host
country. They keep modern technology to themselves to maintain monopoly and
capture the market.
Influence in politics
Multinational companies are financially strong. As a result, they influence policy
makers of developing countries in introducing rules and regulations in their favor.
They hardly care for the welfare and development of the host countries and their
people.
Social inequality
Multinational companies never think about the needs and wants of the poor people.
Their aim is to attract the higher income group of society towards their luxury
products. The poor section of the society cannot buy their products. As a result,
they create the gap between the rich and the poor. Multinational companies also
spoil the culture, tradition, honesty, habits and feelings of the people of the host
country.