Impacts of MNCs on various sectors of India

1. Presented By:
Ipsita Samantaray
Shree Mishra
Abhipsa Ray
Manisha Panigrahi
Subhasmita Biswal
Suvransu Sekhar Panigrahi
Pradyumna Kumar Swain

2. Meaning of MNC
History of MNC
MNC in India
Roles of MNC in India
Impact on Local and National Economies
Impact on the World Economy
Favorable Impact of MNCs
Harmful effect of MNCs
Impact on India
Future of MNC
Conclusion
List of MNCs in India
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3. An enterprise operating in several
countries but managed from one (home)
country.
A multinational corporation (MNC) or
multinational enterprise (MNE) is a
corporate enterprise that
manages production or delivers services
in more than one country.
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4. First MNC in world First MNC in India Indian MNC
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5. Multinational corporations affect local and
national policies by causing governments to
compete with each other to be attractive
to multinational corporation investment in their
country.
e.g. - Walmart is an example of a large
multinational corporation that often
exerts influence on political processes through
lobbying, contributions to campaigns, and
threats of market withdrawal.
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6. Multinational corporations play an important
role in the world economy through the
process of economic globalization; in other
words, the increasing economic
interdependence of national economies
across the world through a rapid increase in
cross-border movement of goods, services,
technology and capital.
e.g. - India is an example of a country that,
economically, has benefitted from globalization
— it has seen rapid GDP growth and has a
growing middle class with a rising standard of
living.
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7. MNCs and Indian Industries
MNCs and agriculture
MNCs from social and moral viewpoint
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8. 1. MNCs create employment opportunities in the host
countries. It helps to create a pool of managerial
talent in the host country.
2. Helps removal of monopoly and improve the quality
of domestic made products.
3. Promotes exports and reduce imports by raising
domestic productions.
4. Goods are made available at cheaper price due to
economies of scale.
5. Job and career opportunities at home and abroad in
connection with overseas operations.
6. Encourages the world unity and all resulting in world
harmony
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9. 1. The host county is likely to lose its
economic sovereignty
2. The host nation may also experience some
loss of control over its own economy
3. Feeling that labour is being exploited by the
MNC/ Outsourcing
4. Lost of cultural moorings
5. The problem of Dumping
Example – Chinese products are priced low in
Indian market.
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10. Profit maximization
Increased revenue
Large amount of tax collections through
MNC’s
Economic health improved
Employment increased
Foreign relation increased
International network of marketing
Concentration in consumer goods
Cultural explosion
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11.  Increasing international competition.
 Global consumer awareness.
 Technological advancement.
 Reduction in friction among nations.
 World Business Community coming together.
 Growing role of private sector inn developing countries.
 Regional economic Integration.
 Increase in the number of bilateral treaties that promote FDI
has increased considerably.
 Privatization programmes.
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12. Retail shops use to recruit individuals with
HSC and SSC qualification
But now the basic criteria is specialization in
business areas
When the doors are opened for the MNCs
there would be a more pressure on recruiting
individuals specialized in this area.
Consequently the unskilled persons will face
unemployment
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13. Accelerate retail market growth
Farmers will benefit
Foreign brands will promote healthy
competition in market
Push to infrastructure
Push to productivity
Customers feel that retail stores offer better
deals
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14. But a few thousand jobs will not compensate
for the millions of livelihood destroyed by
MNCs.
For each employee recruited in MNC, 10 jobs
are lost in domestic retail market
Small retailers will slowly and silently get
displaced and deprived of their daily bread
Traditional business forms will be destroyed.
If 4 million jobs are to be created in 3 years,
the entire domestic retail sector in India will
be completely wiped out.
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15. Majority of foreign subsidiaries operating in India
either belong to the U.K. (68%) or the U.S.A.
(15%).
Most of the foreign subsidiaries have raised
financial resources from within India, and the
transfer of capital from the parent company has
been marginal.
A number of foreign companies in India are
acquiring the character of multi-product and
multi-industry enterprises.
The assumption that the entry of MNCs would
ensure transfer of sophisticated technology to
developing countries has not been found valid in
practice.
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16. British Petroleum
Vodafone
Ford Motors
LG
Samsung
Hyundai
Accenture
Reebok
Skoda Motors
ABN Amro Bank
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17. Utkal University, Bhubaneswar