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    Multinational Companies

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    Amishi Trivedi
    Multinational corporations (MNCs) manage production or deliver services across multiple countries. They originated in the early 20th century and expanded after World War II. MNCs are classified based on having subsidiaries in foreign countries, operations across many countries, and stakeholders from different countries. While MNCs bring investment, jobs, and technology to host countries, they can also limit competition and imports. In India, MNCs offer employment and training opportunities but face challenges from cultural and market differences when expanding internationally.

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    Multinational Companies

    Uploaded by

    Amishi Trivedi
    3K views19 pages
    Multinational corporations (MNCs) manage production or deliver services across multiple countries. They originated in the early 20th century and expanded after World War II. MNCs are classified based on having subsidiaries in foreign countries, operations across many countries, and stakeholders from different countries. While MNCs bring investment, jobs, and technology to host countries, they can also limit competition and imports. In India, MNCs offer employment and training opportunities but face challenges from cultural and market differences when expanding internationally.

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    Multinational corporations (MNCs) manage production or deliver services across multiple countries. They originated in the early 20th century and expanded after World War II. MNCs are classified based on having subsidiaries in foreign countries, operations across many countries, and stakeholders from different countries. While MNCs bring investment, jobs, and technology to host countries, they can also limit competition and imports. In India, MNCs offer employment and training opportunities but face challenges from cultural and market differences when expanding internationally.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    3K views19 pages

    Multinational Companies

    Uploaded by

    Amishi Trivedi
    Multinational corporations (MNCs) manage production or deliver services across multiple countries. They originated in the early 20th century and expanded after World War II. MNCs are classified based on having subsidiaries in foreign countries, operations across many countries, and stakeholders from different countries. While MNCs bring investment, jobs, and technology to host countries, they can also limit competition and imports. In India, MNCs offer employment and training opportunities but face challenges from cultural and market differences when expanding internationally.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 19

    MULTINATIONAL

    COMPANIES

    By : Ms. Amishi Trivedi

    OVERVIEW
    What is MNC?
    Classifying an MNC
    History and Evolution of MNC
    SWOT Analysis of MNC.
    Advantage and Disadvantage of MNC
    MNCs in India.

    WHAT IS A
    MULTINATIONAL
    CORPORATION???

    It is a corporation that:
    Manages
    In
    Delivers
    more than
    services
    production
    one country
    And/or

    HOW IS A COMPANY
    CLASSIFIED AS AN MNC?
    Subsidiaries
    in foreign
    countries;

    Operations in
    a number of
    countries;

    Stakeholders
    are from
    different
    High proportion countries.
    of assets in or/
    and revenues
    from global
    operations;

    HISTORY AND EVOLUTION OF


    MNCS:

    These corporations originated early in the 20th


    century and expanded afterWorld 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.

    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.

    SWOT Analysis of MNCs:


    Strengths
    Low Cost
    Well Developed
    Infrastructure

    Opportunities

    Leverage Government
    Attract new industries

    Weakness

    Location is often very distant


    Lack of Transportation facilities
    Relative Inflexibility

    Threats

    Govt. restrictions
    Quotas

    ADVANTAGES OF MNCS
    TO THE HOST COUNTRY:

    Transfer of technology, capital and


    entrepreneurship.
    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.

    ADVANTAGES OF MNCS
    TO THE HOME COUNTRY.

    Acquisition of raw materials from abroad.

    Technology and management expertise acquired


    from competing in global markets.

    Export of components and finished goods for


    assembly or distribution in foreign markets.
    Inflow of income from overseas profits, royalties
    and management contracts.

    DISADVANTAGES OF MNCS:

    Trade restrictions imposed at the government-level

    Limited quantities (quotas) of imports.

    Effective management of a globally dispersed


    organization.

    Slow down in the growth of employment in home


    countries.

    Destroy competition and acquire monopoly.

    MNCs IN INDIA

    Indias Big Dream


    Harnessing the global trends by encouraging the
    MNCs to engage in product innovation for local
    consumers represents a big challenge in India.
    Policy-makers, industry leaders and academic
    institutes need to work together to create and
    disseminate a list of "dream innovations" that will
    inspire people.
    The development of Tata Motor's Rs 1 lakh car
    provides a powerful example

    MNCs in India have a long history and


    tradition:

    WHAT INDIA OFFERS???

    One billion plus population.


    India is ranked as the 10th largest economy, 4th largest in
    terms of Purchasing Power Parity.

    250-300 million middle class.

    Gross Domestic Product (GDP) is growing at over 7-9 %,


    making it one of the fastest growing economies in the
    world.

    Opportunities for U.S. exporters with the right products or


    services.
    Easier access to capital.

    KEY ADVANTAGES OF
    EXISTENCE OF MNCS IN
    INDIA

    Work culture for employees.

    Training and Learning.

    Technology especially concept of working with


    better technologies.

    Safety, Health and Environmental Learning.

    Excellent training grounds for many entrepreneurs.

    KEY CHALLENGES THAT


    INDIAN MNCS FACE:

    Domestic market like India vis - a - vis International expansion.

    Language.

    Culture.

    Autonomy to local managers .

    Styles of doing business.

    Handling of potential liabilities related to Labor, IPR etc.

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