MNC

MULTINATIONAL CORPORATION
 DEFENITION
• MNC means Multi National Corporation. MNC
company is the company where the company
produces the goods in any where of the world
and sells the goods in any where of the world
is called MNC.
 Multinational Companies in India
• India has been the home to a number of
multinational companies. In fact, since the
financial liberalization in the country in 1991,
the number of multinational companies in
India has increased noticeably. Though
majority of the multinational companies in
India are from the U.S., however one can also
find companies from other countries as well.
 Destination India

• Though the American companies – The

majority of the MNC in India, account for
about 37% of the turnover of the top 20 firms
operating in India, but the scenario has
changed a lot off late.
• Enterprises from European Union like Britain,
France, Netherlands, Italy, Germany, Belgium
and Finland have come to India or have
outsourced their works to this country.
• Finnish mobile giant Nokia has their second
largest base in this country.
• MNCs like British Petroleum and Vodafone
that represent Britain.
• India has a huge market for automobiles and
hence a number of automobile giants have
stepped in to this country to reap the market.
• One can easily find the showrooms of the
multinational automobile companies like Fiat,
Piaggio, and Ford Motors in India.
• There are also a number of oil companies and
infrastructure builders from Middle East.
• Electronics giants like Samsung and LG
Electronics from South Korea have already
made a substantial impact on the Indian
electronics market.
Why are Multinational Companies
in India?
• India has got a huge market. It has also got
one of the fastest growing economies in the
world. Besides, the policy of the government
towards FDI has also played a major role in
attracting the multinational companies in
India.
• Government, nowadays, makes continuous
efforts to attract foreign investments by
relaxing many of its policies. As a result, a
number of multinational companies have
shown interest in Indian market.
What is the impact of MNC's in
India?
• In the sector in which we were behind like
computers , electronic goods got the latest
variety.
• In the fields like textiles we suffered because
we have a strong base of that but the products
r simple and not glamorous . The MNC'S in this
field have ruined the small sector.
• It seems as MNCs are generating employment
but reality is different. Some thorny plants are
beautiful . Its just like that. The way they treat
the villagers or unskilled staff is very pathetic.
• In the name of collaboration they do not care
of our tradition.
• For INSURANCE only allopathy treatment is
taken as the base for getting refund .
• Many items were reserved for small sector but we
are seeing the entrance of foreign products in that
field also.
• MNCs are allowed to exploit our resources but our
mnc's r not allowed to do that in other countries.
• At present MNCs are not investing in the basic
goods or services like building CHEAP HOMES FOR
POOR, CHEAP technology in the field of medicines.
How many types of MNCs are
there?
• There are three types of MNCs. They are:
• Horizontally integrated multinational
corporations.
• Vertically integrated multinational
corporations.
• Diversified multinational corporations.
What is the Impact of MNC’s on
Indian Economy ?
• Multi National Companies, they produce
foreign currency in India and assist country
population to get jobs. I think because of
these MNCs in the last few decades, our
economy grew like anything and today Indian
Engineers are acknowledged worldwide. They
are getting request from universally and are
getting additional money which in turn is
growing our economic position.
Advantages and disadvantages of
MNC
• Adv: MNCs are globally recognised businesses
so you have great potential for your career
growth in a global level

DisAdv: Career path in an MNC will take time

to establish.
• For Society
-----------------
Adv: MNCs remove established legacy businesses and
promote local employment opportunities. They also
provide various charitable services to the society.

Disadv : MNCs induces competition, and their profit

minded operations may impact local
markets/produce.
• For government
--------------------
Adv: Tax source, Economic benefit
DisAdv: MNCs Strategy will influence various
govt policy making which may not always be
good for the economy.
 MNCs and agriculture:

• MNCs help in modernizing Indian agriculture.

• They provide modern agricultural inputs such
as HYV seeds, pesticides, fertilizers and
modern agricultural equipments to the Indian
farmers and thus Indian agriculture has turned
itself from subsistence level to making profits.
MNCs also encourage research activities in the
field of agriculture in developing countries like
India.