Upload
taran-jeet
View
20
Download
0
Embed Size (px)
DESCRIPTION
what is an mnc... nd what has happened after d entry of mnc's in india
Citation preview
ENTRY OF MNC’S IN INDIA
Submitted by:
Taranjeet Kaur
12051
MBA 1st sem
WHAT IS AN MNC ???
MNC stands for MULTINATIONAL CORPORATION
WHAT IS A MULTINATIONAL
CORPORATION???
Manages production
In more than one country
Delivers services
And/or
It is a corporation that
Any company or a group that operates in many countries but is managed in a single country (home country) is a multinational company or multinational corporation
As ILO report says, “The essential nature of the multinational enterprises lies in the fact that its managerial headquarters are located in one country (home country) while the enterprise carries out operations in a number of other countries as well (host countries).
INTERNATIONAL CORPORATION(KOUTONS)
GLOBAL CORPORATION (PEPSI)
MULTINATIONAL CORPORATION (MICROSOFT, IBM)
TRANSNATIONAL CORPORATION(AUDI, BMW)
TYPES
1ST MNCIn world
•Dutch east India company
1ST MNC In INDIA
•IBM
1ST Indian MNC
•RANBAXY LABORATIES Ltd
Advantages
To the Home
Country
To the Host
Country
ADVANTAGES OF MNCS TO THE HOST COUNTRY:
Availability of latest technology
Management expertise from MNCs
Increase in investment level, employment level and income level
Increase in exports and decrease in imports.
ADVANTAGES OF MNCS TO THE HOME COUNTRY. Acquisition of raw materials from
abroad.
Opportunity of marketing the products all over the world
Employment opportunity
Benefit of foreign culture Maintain favorable balance of payment
in long run
DISADVANTAGES OF MNCS:
Adoption of ethnocentric approach in staffing leading to unemployment in host country
Discourage the domestic rate of saving & investment by making capital investment in the host country
Slow down in the growth of employment in home countries.
Transfer the capital from the home country to various host countries causing unfavorable balance of payment
MNC’s in INDIA
NEED FOR MNC IN INDIA
Technological gap. Undertaking the initial risk. Development of basic economic
infrastructure. Foreign exchange gap.
MNCs in India MNCs in India
THE INDIAN MNC’S…..
WHAT INDIA OFFERS??? One billion plus population.
India is ranked as the 11TH largest economy in terms of nominal GDP , 3RD largest in terms of Purchasing Power Parity(PPP).
Opportunities for U.S. exporters with the right products or services.
Easier access to capital.
17
Economic growth
Reduction in Unemployment
Technology gap
Initiating a higher level of investment
Excellent training grounds
Undertaking initial risks
WHAT INDIA HAS REALLY GAINED
KEY GAINS NOW…… Outsourcing Centers for key processes setup by various
MNCs
R&D Outsourcing – Pharmaceuticals, Engineering, IT, Telecom
Product development centers (Telecom, IT)
HARMFUL EFFECTS Encouraged demonstration effect Competition with small scale industries Providing prohibited goods Unfair trade practices Fluctuation in investment Production of profitable goods.
CONCLUSION
MNC’s have both merits and demerits..Special precautions should be undertaken to avoid demerits.
Due to the MNC’s,Competition has increased and
more employment opportunities are available..
AND soon INDIA will be as we Dream off…!!!