ROLE OF MNCs IN DEVELOPING ECONOMY

PREPARED BY:PANKAJ PREET SINGH TALWINDER SINGH RAJ SINGH

MULTINATIONAL CORPORATIONS

A multinational corporation (MNC) or multinational enterprise

(MNE) is a corporation that is registered in more than one country or that has operations in more than one country. It is a large corporation which both produces and sells goods or services in various countries. It can also be referred to as

an international corporation.

CONTD
The first multinational company was the British East India Company, founded in 1600. The second multinational corporation was the Dutch East India Company, founded in March 20, 1602.

There are mainly three types of MNCS: Transnational Corporation Parent enterprise Foreign Affiliate:- A subsidiary, associate, and branches are all referred to as foreign affiliates.

FEATURES OF MNC
WORLD WIDE OPERATION CREATE MAXIMUM OPERATION ADVANCED TECHNOLOGY HIGH EFFICIENCY PRODUCT/SERVICE ORGANIZATION OWNERSHIP AND CONTROL

TOP 10 MNCs IN INDIA

MICROSOFT NOKIA TOYOTA INTEL COCA-COLA SONY IBM GENERAL ELECTRIC NIKE CITIGROUP

WHY ARE MULTINATIONAL COMPANIES IN INDIA?

Following are the reasons why multinational companies consider India as a preferred destination for business: Huge market potential of the country FDI attractiveness Labour competitiveness Macro-economic stability

IMPACT OF MNCs ON VARIOUS SECTORS

MNCs and Indian Industries:
TRANSFER OF TECNOLOGY IMPROVES WORKING AND EFFICIENCY DEMAND FOR SKILLED LABOUR INCREASES MORE SALARY TO SKILLED PERSONNEL

COMPETITIVE ENVIRONMENT

MNCs and Agriculture:

PROVIDE MODERN AGRICULTURAL EQUIPMENTS HYV SEEDS

ENCOURAGE RESEARCH ACTIVITIES

GOOD QUALITY OF FERTILIZERS AND PESTICIDES

MNCs from Social and Moral Viewpoint:

NON PAYMENT OF TAX LIABILITY MISALLOCATION OF RESOURCES TAKING ADVANTAGE OF LOOSE ENVIRONMENTAL LAWS MORE FOCUS ON LUXURIOUS PRODUCTS

Multinational corporations are agents of globalisation.

ACCESS TO MARKETS
LABOUR FACTORS PARTNERSHIPS TAX EFFECTS COORDINATION CHALLENGES

 LATEST TECHNOLOGY

INCREASE IN INVESTMENT LEVEL INCREASE IN EMPLOYMENT LEVEL INCREASE IN INCOME LEVEL IMPROVE BALANCE OF PAYMENT INDUSTRIAL AND ECONOMIC DEVELOPMENT INCREASES

 OPPORTUNITIES FOR MARKETING EMPLOYMENT OPPORTUNITIES BOOSTING THE INDUSTRIAL ACTIVITIES MAINTAINING FAVOURABLE BALANCE OF PAYMENT BENEFIT OF FOREIGN CULTURE

 LESS EMPLOYMENT OPPORTUNITIES DUE TO GEOCENTRIC APPROACH UNFAVOURABLE BALANCE OF PAYMENT

NEGLECTING INDUSTRIAL AND ECONOMIC

DEVELOPMENT

 TRANSFER OF OUTDATED TECHNOLOGY DEPLETION OF RESOURCES MORE MONEY FLOWS TO HOME COUNTRIES THREAT TO ECONOMIC AND POLITICAL SOVEREIGNTY