This document discusses multinational corporations (MNCs), their impact on developing countries like India, and whether they are a blessing or curse. It notes that while MNCs provide benefits like jobs and technology, they can also exploit resources and cultures. MNCs face challenges operating in foreign markets due to differences in policies, cultures and risks. Overall, the document suggests that MNCs can benefit developing nations if regulated properly to balance economic opportunities with social and environmental protections.

1. MULTINATIONAL
COMPANIES: BLESSINGS OR
DEVILS IN DISGUISE
PRESENTED BY:
GAGANJOT SINGH AULAKH

2. INTRODUCTION
A multinational corporation (MNC) is trans
national co-operation
 It can also be referred to as an international
corporation

3.  The International Labor Organization (ILO) has
defined an MNC as a corporation that has its
management headquarters in one country, known
as the home country, and operates in several other
countries, known as host countries.

4. MARKET IMPERFECTIONS
 Market imperfections had been considered by Hymer as
structural and caused by the deviations from perfect
competition in the final product markets.
 The imperfections in markets are natural as the
neoclassical assumptions like full knowledge and
enforcement don't exist in real markets.

5. INTERNATIONAL POWER
 Tax competition
 Market withdrawal
 Lobbying
 Patents
 Government power

6. MICRO-MULTINATIONALS
 Enabled by Internet based communication tools, a new
breed of multinational companies is growing in numbers.
 They are small businesses.
 Internet tools like Google,Yahoo,MSN,Ebay and Amazon
make it easier for the micro-multinationals to reach potential
customers in other countries.

7. SOME POSITIVE IMPACTS OF
MULTINATIONALS
 Provides Employment
 Help to trade in international market
 Introduces with new products
 Improves financial status
 Foreign exchange gap is reduced
 Boosts up basic economic structure
 Natural resources are utilized
 Reduce technological gap

8. CRITICISM OF MULTINATIONALS
 Multinationals create false needs in consumers and have
had a long history of interference in the policies of
sovereign nation states.
 Anti-corporate protesters suggest that corporations answer
only to shareholders, giving human rights and other issues
almost no consideration.

9. IMPACT OF MNC’S ON
DEVELOPING COUNTRIES
 Multinational corporations play an important role in
globalization.
 Multinational corporations can have a powerful influence in
international relations and local economies-
 MNCs and Indian Industries
 MNCs and agriculture
 MNCs from social and moral viewpoint

10. DEVIL IN DISGUISE
 This being physical exploitation one strenuous
dimension of MNC.
 It costs the nation a fortune in terms environment.
 Used as cheap Labour
 Long Hour Working

11. MULTINATIONAL COMPANIES IN INDIA
 Majority of Multinaltionals companies in India are from
U.S but one can also find companies from other countries
as well.
 Since the financial liberalization in the country in 1991, the
number of multinational companies in India has increased
noticeably.

12. DESTINATION INDIA
 The multinational companies in India represent a
diversified portfolio of companies from different
countries.
 Electronics giants like Samsung and LG Electronics from
South Korea have already made a substantial impact on
the Indian electronics market.
 Hyundai Motors has also done well in mid-segment car
market in India.

13. REASON FOR MULTINATIONAL
COMPANIES IN INDIA
 India is one of the fastest growing economy in the world.
 India has got a huge market.
 Government, nowadays, makes continuous efforts to
attract foreign investments by relaxing many of its
policies

14. REASONS WHY MNC'S CONSIDER
INDIA AS PREFERRED DESTINATION
 Huge market potential of the country
 FDI attractiveness
 Labor competitiveness
 Macro-economic stability

15. List of Multinational Companies in
India
 British Petroleum
 Vodafone
 Ford Motors
 LG
 Samsung
 Hyundai
 Accenture
 Reebok
 Skoda Motors
 ABN Amro Bank
 Tata Motors

16. MNC CULTURE AND ITS IMPACT
ON INDIAN CULTURAL DIVERSITY
 Changes have taken place not only in quality of life but also
in the social architect of society.
 The main effect of spread of MNC's in the reason has taken a
toll on family structure.
 The gap between poor and rich is increasing continuously.
 Youth leaves education in a midway and join MNC'S.
 Increase in the voilence particularly against women.

17. MNC IMPACT ON INDIAN ECONOMY
 Many Indian firms have slowly and surely embarked on
the global path and lead to the emergence of the Indian
multinational companies.
 Indian businesses are acquiring companies’ abroad,
becoming world-popular suppliers and are recruiting staff
cutting across nationalities.

18.  Asian Paints is painting the world red, Tata is
rolling out Indicas from Birmingham and
Sundram Fasteners nails home the fact that the
Indian company is an entity to be reckoned with.

19. MARKETING MIXES IN
INSURANCE SECTOR
1. Product
2. Promotion
3. Price
4. Place
5. People
6. Physical Evidence
7. Process
1. Flow of activities
2. Standardization
3. Customization

20. MARKET SEGMENTATION IN
INSURANCE SERVICE
 In Insurance Services, the task of formulating the overall
marketing strategy cannot be performed satisfactorily till
market segmentation
 Insurance market segmentation is done on the basis of region.
 The main purpose of segmentation is to know the policyholder.

21. CHANGING ROLE OF MNC’s
 The business activity of the MNCs coupled with
the introduction of education and availability of
jobs affected the social organization profoundly.
 Focus on research.
 How the new multinationals are remaking the
old.
 First, count your blessings.
 The world is bumpy.

22. MNCS & INDIAN RISK EXPOSURES
 Multinational corporations (MNC) perceive risk
exposures to their business continuity in India more
stringently and severely than an Indian entrepreneur
would.
 Failure of logistics could delay information gathering, its
processing and transmission
 The perceived risk of terrorism in India is a serious risk
exposure.
 Continuous and long-drawn strife and tension between
Pakistan and India

23. IMPACT OF MNC IN INDIA
 In the sector in which we were behind are computers,
electronic goods which got the latest variety.
 In the fields like textiles we suffered because we have a strong
base of that but the products are simple and not glamorous.
 Many items were reserved for small sector but we are seeing
the entrance of foreign products in that field also.
 They are allowed to exploit our resources but our MNC's are
not allowed to do that in other countries.
 Our people are making products at cheaper rate but they are
not promoted at the large scale.

24. CONCLUSION
 Globalisation has intensified interdependence and
competition between economies in the world
market.
 Domestic economic developments are not
determined entirely by domestic policies and
market conditions. Rather, they are influenced by
both domestic and international policies and
economic conditions.
 MNCs can be helpful for developing countries only
when they are kept under control.
 MNC’s hire large amount of talented youth that
work like dogs all through the day.

25.  MNCs are definitely devils in disguise.
Although there are huge benefits for the
country as a whole but if you look at a
holistic perspective your opinion will differ.
 MNC’s ultimately are culture vultures and
are penetrating into the Indian family
system and thereby making kids more
independent at a very young age.

26. THANK
YOU