this presentation tells about MNCs and its characteristics and mainly it concentrates on role of MNCs in developing countries.

1. BY: SANTOSH HEGDE

2. •Multinationalcorporationrefersothecorporategiantbusinessfirmhavingextendeditsproductiveactivityinmanynationsbesidesitshomecountry.
•AccordingtoDevidE.Litiental,MNCsas“Corporationswhichhavetheirhomeinonecountrybutoperateandliveunderthelawsandcustomsofothercountriesaswell”.

3. •MNCshavemanagerialheadquartersinhomecountries,andtheyalsocarryouttheirbusinessinothercountryaswell.
•Alargepartofcapitalassetsoftheparentcompanyisownedbythecitizensofthecompany’shomecountry.
•MNCsarepredominantlylarge-sizedandexerciseagreatdegreeofeconomicdominance.
•TheabsolutemajorityofthemembersoftheBoardofdirectorsarecitizensofthehomecountry.

4. MNCs have contributed significantly to development of world economy at large.
•MNCs help a developing host country by increasing investment, income and employment in its economy.
•They contribute to the rapid process of development of the country through transfer of technology, finance and modern management.
•MNCs promoting exports of the host country.

5. •MNCsbyproducingcertainrequiredgoodsinthehostcountryhelpinreducingitsdependenceonimports.
•MNCsduetotheirwidenetworkofproductiveactivityequalizethecostofproductionintheglobalmarket.
•EntryofMNCsinthehostcountrymakesitsmarketmorecompetitiveandbreakthedomesticmonopolies.
•MNCsacceleratethegrowthprocessinthehostcountrythroughrapidindustrializationandalliedactives.

6. •MNCsintegratenationalandinternationalmarkets.Theirgrowthinthesedayshasremarkablyinfluencedeconomic,industrial, socialenvironment.
•MNCsareregardedasagentsofmodernizationandrapidgrowth.
•MNCsbringideasandhelpinexchangeofculturalvalues.

7. •Today,invitationtoMNCsisanunavoidableneedofeverydevelopingcountry.MNCshaveplayedasignificantroleinthedevelopmentofcountriessuchasGermany,JapanandtheUSA. TheMNCsarenowinterestedincapturingthemarketsofpopulouscountrieslikeIndia,China,etc.ThedevelopingcountriesareinterestedintheentryofMNCswiththeiropendoorpolicies.