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MNCs Features, significance, Role , Impact of MNCs on Indian economy.

Complete description of MNCs { Features, significance, Role , Impact of MNCs on Indian economy}

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MNCs Features, significance, Role , Impact of MNCs on Indian economy.

  1. 1. BUSINESS ENVIRONMENT Multination Corporation SUBMITTED BY: 1.MEHAK JAIN 2. HITESHI PUNJABI 3.MAYANK MULCHANDANI 4. DIVY SONI 5. GEETICA JAIN SUBMITTED TO: DR. PARUL SHARDA MAM
  2. 2. What do you mean by the word MNC..??
  3. 3. It is a corporation that :- It is a corporation that :- Manages production In more then One country Delivers services
  4. 4. Meaning of MNC:  A Multinational Corporation (MNC) has facilities & other assets in at least one country other than its home country. Such companies have offices and /or factories in different countries and usually have a centralized head office where they coordinate global management.  Corporation which have their home in one country bit operate and live under the laws and customs of other countries as well.
  5. 5.  MICROSOFT.  IBM.  NESTLE.  PROCTER & GAMBLE.  COCA COLA.  PEPSICO.  CITI GROUP.  SONY CORPORATION.  HEWLETT PACKARD (HP)  APPLE INC LIST OF TOP 10 BEST MULTINATIONAL COMPANIES IN INDIA.
  6. 6.  Huge Assets and Turnover: ...  International Operations Through a Network of Branches: ...  Unity of Control: ...  Mighty Economic Power: ...  Advanced and Sophisticated Technology: .  Professional Management: ...  Aggressive Advertising and Marketing:  Better Quality of product FEATURES OF MULTINATIONAL CORPORATIONS (MNCS):
  7. 7. Significance of MNC:  Transfer of capital and technology.  Mass production  Increase in employment opportunities.  Increase in government revenue.  Research and development.  Good international relationship.
  8. 8. ROLE OF MNC  It promotes the exports of the host country.  Rapid process of development.  Equalising the cost of production.  Reduce dependence on imports.  Rapid industrialisation .  Agent of modernisation.
  9. 9.  Exchange of cultural values  Integration of market.  Increase investment , income and employment.
  10. 10. IMPACT OF MNC ON INDIAN ECONOMY  Profit maximization  Increased Revenue  Large amount of tax collections through MNC’s  Economic health improved  Employment increased  Foreign relation increased  Concentration in consumer goods  Cultural explosion
  11. 11. Examples:  Tata group has appeared in the news for quite often. Apart from grabbing Tetley Tea, the Tata Group made several acquisitions including Tyco Global (a USA based telecom operator), Daewoo Commercial Vehicles, Ritz Carlton hotel in Boston, Eight O’clock Coffee and Energy Brands, which manufactures flavoured water. Recently, the group also offered to buy out UK-based Corus Group, one of the largest steel producers in the world. Ranbaxy acquired 96% stake in Terapia, the largest generic drug company in Romania for $324 million.
  12. 12. COMPARISION BETWEEN PRE- MNC PERIOD AND POST-MNC PERIOD
  13. 13. PRE – MNC PERIOD  The first MNC came into India was EAST INDIAN COMPANY in 1600.  Low level of growth.  License Raj system.  Low standard of living.  Expansion of business was less.
  14. 14. POST MNC PERIOD  Global acquisition .  Increased employment rate in country.  Foreign Investment.  Promotion of Competition .  Cheaper goods available due to economies of scale. Positive impact
  15. 15. POST MNC PERIOD Negative Impact The problem of dumping Cultural homogenisation. Feeling of labour exploitation by outsourcing. Transfer pricing. Economic uncertainty.
  16. 16. THANK YOU FOR YOUR ATTENTION

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