The document provides information about multinational companies including their history, definition, presence in Pakistan, and advantages and disadvantages. It discusses how multinationals originated in the 20th century and expanded after World War II. A multinational corporation is defined as one that manages production and delivers services in more than one country. Examples of major multinationals that have operations in Pakistan are discussed. The advantages of multinationals to both host and home countries include technology transfer, investment, employment, and trade. However, disadvantages include potential monopolization of markets, resource depletion, and capital outflows from the home country.

2. Presentation of IT
Presented To:-
Ms Fatima
Presented By:-
Ahmad Waqas
Maqbool Tariq
Topic:-
Multinational Company

3. Content
 History.
 Definition.
 Multinational Companies In
Pakistan.
 Advantages and
Disadvantages Of Multinational
Companies in Pakistan.

5. History And Evolution of MNCs:
• These corporations originated early in the 20th century
and expanded after World War II.
• A multinational corporation developed new products in
its native country and manufactured them abroad.
• Almost all the earliest and largest multinational firms
were either American, Japanese, or West European.

6. History And Evolution of MNCs:
• During the last three decades, many smaller
corporations have also become multinational.
• Such enterprises maintain that they create
employment, create wealth, and improve
technology in countries.

7. What is a Multinational
Company ???
 It is a corporation that:
Manages
production
In more than
one country
Delivers
services
And/or

8. Definition of multinational
company
When a Corporation that is Registered in
More than one Country or that has Operations
in More than one Country may be Attributed
as MNC. Usually, it is a large Corporation
which both Produces and Sells goods or
services in various Countries. It can also be
Referred to as an International Corporation.
We also Known Multinational Companies as
International Companies.

9. How Is A Company Classified
As An MNC?
Subsidiaries in
foreign
countries;
Operations in a
number of
countries;
High proportion of
assets in or/ and
revenues from
global operations;
Shareholders are
from different
countries.

10. Multinational Companies In
Pakistan
History of Multinational
company in Pakistan.
MNCs in Pakistan. After the
boom period of 90s
• The presence of multinational
corporations in Pakistan dates
back to the early 1930s ,
siemens is perhaps the oldest
in the industrial field having
set up in 1932.
• Unilever(formerly lever
Brothers) , imperial tobacco.
Shell and burma oil came soon
after independence in 1947
• A new batch of MNCs in
Pakistan arrive in the period of
the 90s. Prorctor and gamble
(P & G) started operations.
• Other global companies such
as telenor , warid , Barclays
commenced operations.
• More multination corporations
are entering in Pakistan and in
the more future are expected.

11. Advantages
To the Home
Country
To the Host
Country

12. Advantages of MNCs to the
Host Country:
• Transfer of technology and capital.
• Increase in the investment level and thus, the
income and employment in the host country.
• Greater availability of products for local
consumers.
• Increase in exports and decrease in imports.

13. Advantages of MNCs to the
Home Country.
• Acquisition of raw materials from abroad.
• Inflow of income from overseas profits,
royalties and management contracts.
• MNC's help to maintain favorable balance of
payment of the home country in the long run.
• They create employment opportunities to the
people of home country both at home and
abroad.

14. Disadvantages of Multinational
Company
Disadvantages
To the host
country
To the home
country

15. To The Host Country
• MNC's may kill the domestic industry by
monopolizing the host country's market.
• In order to make profit, MNC's may use
natural resources of the home country
indiscriminately and cause depletion of the
resources.
• A large sums of money flows to foreign
countries in terms of payments towards
profits, dividends and royalty.

16. To the home country
• MNC's transfer the capital from the home
country to various host countries causing
unfavorable balance of payment.
• MNC's may not create employment
opportunities to the people of home country if it
adopts geocentric approach.
• As investments in foreign countries is more
profitable, MNC's may neglect the home
countries industrial and economic development.

17. Famous multinational
companies logos

19. Any Question …