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MULTINATIONAL
COMPANIES
Prepared by :- sangamesh uppar
lecturer in
commerce
9740522622
Meaning
 A multinational company is a business that
operates in many different countries at the
same time. In other words, it's a company that
has business activities in more than one
country
 Ex:- hp,microsoft, pepsico, sony , tata motors
Why do domestic companies
become MNCs ?
 To increase market share
 To reduce cost
 To overcome tariffs
 To protect them business cycle
 To have technological advantage
Factors contributed for the growth
of MNCs
 Expansion market territory
 Market superiorities
 Financial advantage
 Technological advantage
 Product innovation
Merits of MNCs
Advantages of MNCs to home
country
Control over MNCs in india
MNCs in india
 The entry of MNCs in
India was controlled by
existing industrial policy
statements, MRTP Act,
and FERA.
 The New Industrial
Policy 1991, removed
the restrictions of entry
to MNCs through various
concessions
 MNCs are specifically
covered under foreign
exchange management
act (FEMA)
Role of MNCs in india
 Profit maximisation
 International network marketing
 Diversification policy
 Concentration on consumer goods
 Location on central control offices
 Techniques to achieve public acceptability
 Business but not social justices
 Unconcern towards social responsibilities and
business ethics
 MNCs and process of planned economic
development in india

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Multinational companies

  • 1. MULTINATIONAL COMPANIES Prepared by :- sangamesh uppar lecturer in commerce 9740522622
  • 2. Meaning  A multinational company is a business that operates in many different countries at the same time. In other words, it's a company that has business activities in more than one country  Ex:- hp,microsoft, pepsico, sony , tata motors
  • 3. Why do domestic companies become MNCs ?  To increase market share  To reduce cost  To overcome tariffs  To protect them business cycle  To have technological advantage
  • 4. Factors contributed for the growth of MNCs  Expansion market territory  Market superiorities  Financial advantage  Technological advantage  Product innovation
  • 6. Advantages of MNCs to home country
  • 7. Control over MNCs in india
  • 8. MNCs in india  The entry of MNCs in India was controlled by existing industrial policy statements, MRTP Act, and FERA.  The New Industrial Policy 1991, removed the restrictions of entry to MNCs through various concessions  MNCs are specifically covered under foreign exchange management act (FEMA)
  • 9. Role of MNCs in india  Profit maximisation  International network marketing  Diversification policy  Concentration on consumer goods  Location on central control offices  Techniques to achieve public acceptability  Business but not social justices  Unconcern towards social responsibilities and business ethics  MNCs and process of planned economic development in india