Complete description of MNCs { Features, significance, Role , Impact of MNCs on Indian economy}

1. BUSINESS
ENVIRONMENT
Multination Corporation
SUBMITTED BY:
1.MEHAK JAIN
2. HITESHI PUNJABI
3.MAYANK MULCHANDANI
4. DIVY SONI
5. GEETICA JAIN
SUBMITTED TO:
DR. PARUL SHARDA
MAM

2. What do you mean by the word
MNC..??

3. It is a corporation that :-
It is a corporation that :-
Manages
production
In more
then
One country
Delivers
services

4. Meaning of MNC:
 A Multinational Corporation (MNC) has
facilities & other assets in at least one
country other than its home country. Such
companies have offices and /or factories in
different countries and usually have a
centralized head office where they
coordinate global management.
 Corporation which have their home in one
country bit operate and live under the laws
and customs of other countries as well.

5.  MICROSOFT.
 IBM.
 NESTLE.
 PROCTER & GAMBLE.
 COCA COLA.
 PEPSICO.
 CITI GROUP.
 SONY CORPORATION.
 HEWLETT PACKARD (HP)
 APPLE INC
LIST OF TOP 10 BEST MULTINATIONAL COMPANIES IN INDIA.

6.  Huge Assets and Turnover: ...
 International Operations Through
a Network of Branches: ...
 Unity of Control: ...
 Mighty Economic Power: ...
 Advanced and Sophisticated
Technology: .
 Professional Management: ...
 Aggressive Advertising and
Marketing:
 Better Quality of product
FEATURES OF MULTINATIONAL CORPORATIONS (MNCS):

7. Significance of MNC:
 Transfer of capital and technology.
 Mass production
 Increase in employment opportunities.
 Increase in government revenue.
 Research and development.
 Good international relationship.

9. ROLE OF MNC
 It promotes the exports of the host country.
 Rapid process of development.
 Equalising the cost of production.
 Reduce dependence on imports.
 Rapid industrialisation .
 Agent of modernisation.

10.  Exchange of cultural values
 Integration of market.
 Increase investment , income and
employment.

11. IMPACT OF MNC ON INDIAN ECONOMY
 Profit maximization
 Increased Revenue
 Large amount of tax collections through MNC’s
 Economic health improved
 Employment increased
 Foreign relation increased
 Concentration in consumer goods
 Cultural explosion

12. Examples:
 Tata group has appeared in the news for quite often. Apart from grabbing
Tetley Tea, the Tata Group made several acquisitions including Tyco Global (a
USA based telecom operator), Daewoo Commercial Vehicles, Ritz Carlton
hotel in Boston, Eight O’clock Coffee and Energy Brands, which manufactures
flavoured water. Recently, the group also offered to buy out UK-based Corus
Group, one of the largest steel producers in the world.
Ranbaxy acquired 96% stake in Terapia, the largest generic drug company in
Romania for $324 million.

14. COMPARISION BETWEEN PRE- MNC
PERIOD AND POST-MNC PERIOD

15. PRE – MNC PERIOD
 The first MNC came into India was EAST
INDIAN COMPANY in 1600.
 Low level of growth.
 License Raj system.
 Low standard of living.
 Expansion of business was less.

16. POST MNC PERIOD
 Global acquisition .
 Increased employment rate in country.
 Foreign Investment.
 Promotion of Competition .
 Cheaper goods available due to economies of scale.
Positive impact

17. POST MNC PERIOD
Negative Impact
The problem of dumping
Cultural homogenisation.
Feeling of labour exploitation by
outsourcing.
Transfer pricing.
Economic uncertainty.

18. THANK YOU FOR YOUR ATTENTION