This PPT is very helpful for every student

1. PRESENTATION
ON
MULTINATIONAL
COMPANIES
HITESH JASWANI

2. INTRODUCTION
 A multinational corporation (MNC) 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.

3. MULTINATIONAL COMPANIES
 Create Employment
Opportunities
 Benefit of foreign
culture brought by
MNC's.
 MNC's create
opportunities for
marketing
 MNC's transfer the
capital from the home
country to various
host countries.
 As investments in
foreign countries is
more profitable,
Advantages To
Home Countries
Disadvantages To Home
Countries

4. MULTINATIONAL COMPANIES
 The investment level,
employment level, and
income level of the host
country increases due to
the operation of MNC's.
 latest technology from
foreign countries through
MNC's
 Level of industrial and
economic development
increases
 MNC's may transfer
technology which has
become outdated in the
home country.
 MNC's may kill the domestic
industry by monopolizing
the host country's market.
 A large sums of money
flows to foreign countries in
terms of payments towards
profits, dividends and
royalty.
Advantages To
Host Countries
Disadvantages To
Host Countries

5. CONFLICTS OF LAWS
Conflict of laws is a set of procedural rules that
determines which legal system and which
jurisdiction's applies to a given dispute.
The three branches of conflict of laws are:
 Jurisdiction
 Choice of law
 Foreign judgments

6. HOW WE CLASSIFY A COMPANY AS AN
MNC`S
 Generally to qualify as an MNC, the followings qualities
are essential
 Subsidiaries in Foreign Countries
 Operation in number of Countries
 High Proportion of Assets/ Revenue in/ from global operation
 Overseas operation should have manufacturing’s / R&D Operation
 Employees and Stakeholder should be from different Countries

7. DRAWBACKS OF MNCS
 Drainage of Resources
 Minimum Transfer of Technology
 Exploitation of Labour
 Cultural Loss
 Creation of Monopolies
 Evasion of Taxes
 Depletion of Natural Resources

8. CHALLENGES FACING
MULTINATIONAL COMPANIES
1. There is usually acute shortage of
manpower - people with lack of managerial
and technical skills.
2. The challenge of unfriendly business
environment .
3. There may be huge cost of labour in the
host country, at least to get the expatriate
managers from home country or
somewhere else.

9. IS MNC`S SUPERIOR TO INDIAN
COMPANIES ?
I think MNCs are superior to Indian
companies because the very first reason
would be:
India is a developing country and the Indian
companies offer less salaries as compared to the
MNCs because MNCs are spread worldwide and
the turnover is more compared to the Indian.

10. IMPACT OF MULTINATIONAL COMPANIES ON
THE HOST COUNTRY
MNC`s can provide developing countries with
critical financial infrastructure for economic
and social development.
When a multinational invests in a host
country, the scale of the investment (given
the size of the firms) is likely to be significant.
Indeed governments will often offer incentives
to firms in the form of grants, subsidies and
tax breaks to attract investment into their
countries.

11. US TAX POLICY TOWARDS MNCS
 Operating in many countries, MNCs are
subject to multiple tax jurisdictions, i.e., they
must pay taxes to several countries.
 National tax systems are exceedingly
complex and differ between countries.
 Differences among national income tax
systems affect the decisions of managers of
MNCs, regarding the location of
subsidiaries, financing, and the transfer
prices

12. TOP MNCS IN INDIA
IBM (India Private Limited)
Microsoft
Samsung
PepsiCo
Ranbaxy Laboratories Limited
Reebok International Limited
Sony
Coca Cola
Vodafone
Tata Motors Limited

13. CONCLUSION
A MNC`s gives many advantages to
domestic companies through purchasing of
raw material and resources.
A new company uses MNC`s network to
expand their business.
 Industrial growth and GDP Effected so,
MNC`s become a milestone in developing
countries.