MNC'S IN INDIA

SUBMITTED BY:-
GITANSH KAPILA
"MULTINATIONAL
COMPANIES ARE BENEFICIAL
TO OUR SOCIETY AS THEY
CONTINUE TO HELP THE
ECONOMY GROW."
~HILARY CLINTON.
 CONTENT.
Our Agenda for Today
WHAT IS AN MNC?
HISTORY OF MNC.
FEATURES OF MNC.
ROLE OF MNC'S.
MNC'S IN INDIA.
MERITS AND DEMERITS.
WHAT IS OWNS OR CONTROLS PRODUCTION
AN MNC? OF GOODS OR SERVICES IN ONE
OR MORE COUNTRIES OTHER THAN
THE HOME COUNTRY.
 HISTORY OF MNC'S.

FIRST MNC IN WORLD. FIRST MNC IN INDIA. AN INDIAN MNC.

 HUGE ASSETS AND TURNOVER:
Because of operations on a global basis, MNCs have huge physical
and financial assets. This also results in huge turnover (sales) of
MNCs. In fact, in terms of assets and turnover, many MNCs are
bigger than national economies of several countries.

FEATURES
INTERNATIONAL OPERATIONS THROUGH A
NETWORK OF BRANCHES:
OF MNC. MNCs have production and marketing operations in several
countries; operating through a network of branches, subsidiaries and
affiliates in host countries.

UNITY OF CONTROL:
MNCs are characterized by unity of control. MNCs control business
activities of their branches in foreign countries through head office
located in the home country. Managements of branches operate
within the policy framework of the parent corporation.

MIGHTY ECONOMIC POWER:

MNCs are powerful economic entities. They keep on adding to their
economic power through constant mergers and acquisitions of
companies, in host countries.
 ADVANCED AND SOPHISTICATED TECHNOLOGY:
Generally, a MNC has at its command advanced and sophisticated
technology. It employs capital intensive technology in manufacturing
and marketing.

PROFESSIONAL MANAGEMENT:
FEATURES A MNC employs professionally trained managers to handle huge
funds, advanced technology and international business operations.

CONTINUES..
AGGRESSIVE ADVERTISING AND MARKETING:
MNCs spend huge sums of money on advertising and marketing to
secure international business. This is, perhaps, the biggest strategy
of success of MNCs. Because of this strategy, they are able to sell
whatever products/services, they produce/generate.

BETTER QUALITY OF PRODUCTS:

A MNC has to compete on the world level. It, therefore, has to pay
special attention to the quality of its products.
 ROLE OF MNC'S.

FILLING FILLING TRADE FILLING FILLING

SAVINGS GAP. GAP. MANAGEMENT GAP.
REVENUE GAP.
The first important MNCs bring with them the
The second The third important most sophisticated
contribution of MNCs contribution relates to technological knowledge
is its role in filling the role of MNCs is filling
resource gap between
filling the foreign the gap between about production processes
exchange or trade while transferring modern
targeted or desired targeted governmental machinery and equipment to
investment and gap. An inflow of tax revenues and capital poor LDCs. Such
domestically mobilized foreign capital can
reduce or even remove locally raised taxes. By transfers of knowledge,
savings.If the country taxing MNC profits, skills, and technology are
can fill this gap with the deficit in the assumed to be both desirable
foreign direct balance of payments if LDC governments are and productive for the
investments from the the MNCs can able to mobilize public recipient country.
MNCs, it will be in a generate a net financial resources for
better position to positive flow of export development projects.
achieve its target rate earnings.
of economic growth.
ROLE OF MNC'S IN INDIA.

Promotion Non-Debt Technology Promotion of Investment in

Foreign Creating Capital Transfer Exports Infrastructure
Investment inflows
 IMPACT OF MNC'S ON INDIA.

ECONOMIC HEALTH INCREASED

IMPROVED. REVENUE.

EMPLOYMENT
INCREASED.

LARGE AMOUNT OF FOREIGN RELATION

TAX COLLECTIONS. INCREASED.
 MERITS.

INCREASE IN TRANSFERRING INTEGRATING IMPLEMENTING

INVESTMENT THE NATIONAL NEW
LEVEL. TECHNOLOGY. ECONOMY. INNOVATIONS.
 DEMERITS.

HEAVY USE
INFLEXIBILTY
MAY ACQUIRE UNDERESTIMA OF NON-
IN TERMS
MONOPOLY -TE LOCAL RENEWABLE
AND
POWER CULTURE. SOURCES OF
CONDITIONS.
ENERGY.
CONCLUSION.
COMPETITION INCREASED AND MORE
EMPLOYMENT OPPORTUNITY ARE AVAILABLE.
GIVE ADVANTAGES TO DOMESTIC COMPANIES
BY PURCHASING OF RAW MATERIALS.
NEW COMPANY HAVING NETWORK TO EXPAND
THEIR BUSINESS.
THANK YOU!