Impact of mnc in india

impact of MNC's in INDIA advantages and disadvantages

1. IMPACT OF MNC’S IN INDIA ( SEMINAR ) BY MD MOHI UDDIN JUNAID M.COM 3 RD SEM (27 )

2. A MNC is a organization that owns or controls production of goods or services in one or more country other than their home country. It can also be referred as an International cooperation.

3. EXAMPLES OF MNC’S IBM MICROSOFT NESTLE COCA-COLA PROCTER & GAMBLER

4. The main features of MNCS:- Location — MNCs have their headquarters in home countries and have their operational division spread across foreign countries to minimize the cost. Capital Assets —Major portion of the capital assets of the parent company is owned by the citizens of the company's home country. Board of Directors — Majority of the members of the Board of Directors are citizens of the home country. MNCs are large-sized corporation and exercise a great degree of economic dominance.

5. WHY MNC’S ARE ATTRACTIVE TOWARDS INDIA

6. GROWTH OF MNC’S India adopted new economic policy in July 1991 was the liberalization

7. Earlier foreign equity participation was restricted up to 40% , but now 100% is allow in many sector. Continued… Example Tea, coffee and rubber sector, development of township and advertising sector & many more.

8. POSITIVE IMPACT OF MNC ( INVESTMENT )

9. The investment level, employment level, and income level of the host country increases due to the operation of MNC's. The industries of host country get latest technology from foreign countries through MNC's. The host country's business also gets management expertise from MNC's. The domestic traders and market intermediaries of the host country gets Increased business from the operation of MNC's. MNCs break protectionalism, curb local monopolies, create competition among domestic companies and thus enhance their competitiveness. Domestic industries can make use of R and 0 outcomes of MNC's. The host country can reduce imports and increase exports due to goods produced by MNC's in the host country. This helps to improve balance of payment. R. Level of industrial and economic development increases due to the growth of MNC's in the host country. Advantages of MNC's for the host country

10. MNCs create opportunities for marketing the products produced in the home country throughout the world. They create employment opportunities to the people of home country both at home and abroad. It gives a boost to the industrial activities of home country. MNCs help to maintain favorable balance of payment of the home country in the long run. Home country can also get the benefit of foreign culture brought by MNCs. Advantages of MNC's for the home country MNC's home country.

11. Disadvantages of MNC's for the host country MNC's may transfer technology which has become outdated in the home country. As MNC's do not operate within the national autonomy, they may pose a threat to the economic and political sovereignty of host countries. MNC's may kill the domestic industry by monopolizing the host country's market. In order to make profit, MNCs 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 ;noses, dividends and royalty.

12. Disadvantages of MNC's for 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

13. CONCLUSION At present the world economy is an integral economy i.e. a world without borders. The role of MNCs are crucial and their existence is indispensable It's functioning need proper regulation so as to insure protection of national interest , our rich culture, workers and their working time. India has to be selective for allowing the foreign investment and at the same time it must encourage the indigenous industries.

14. POPULAR INDIAN MNC’S HIMALAYA TATA CONSULTANCY SERVICES LARSEN AND TOUBRO INFOSYS WIPRO

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