Role of Multinational Corporations in business world.

2. Meaning of
MultinationalCompanies
 gaint firms
 headquarters in one
country
 business operations in
other countries
 also called Multinational
Corporations

3. Multinational Companies can be defined
as:
According to David E. Liliental,
“ Multinational Companies are those which
have their home in one country but
operate and live under the laws and
customs of other countries as well.”

5. FEATURES OF MNCs
• Operations in
number of
countries
•Transfer of
Resources

6. FEATURES OF MNCs
•Giant size
• International
Market

7. FEATURES OF MNCs
•Professional Management
• Centralized Management
• Dominate Market

8. Merits of MNCs
• Transfer of technology
• Supplementing Capital
• Improving Balance of trade
• Lower Cost of Production

9. Merits of MNCs
•Philip to Domestic Industries
• Creating employment
opportunities
• Research and development activity

10. Demerits of MNCs
• Disregard for national priorities
• Creation of Monopolies
• Harmful for Producers
• Harmful for Consumers

11. Demerits of MNCs
•Promote Alien Culture
i.e. Western dresses, fast food,
sunglasses etc.
• Political Dominance
• Evasion of Taxes

12. HOMEWORK
1. Discuss in brief Benefits of
Multinational Companies in Indian
Context.
2. Find any 5 Multinational
Companies of India.