MNC- Multinational Company

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MNC- Multinational Company:

MNC- Multinational Company MNC is most simply defined as a corporation or enterprise that conduct and control productive activities is more than one country with the head office being established in a developed country As the name suggests any company is referred to as a multinational company or corporation when the company manages its operation or production or services from more than a single country Eg. Nokia Corporation, PepsiCo etc.

Features of MNC:

Features of MNC Live and operate under the law and custom of other country Multibranches Huge amount of capital Advance technology Market expansion Profit is the main objective Control of head office

Why MNC comes to India? :

Why MNC comes to India? Huge market potential of the country FDI attractiveness Labour competitiveness Macro-economic stability

Top MNCs in India:

Top MNCs in India IBM : IBM India Private Limited, has been operating in India since 1992. this global company is known for invention and integration of software, hardware as well as services. The net income of this company post completion of the financial year end of 2010 was $14.8 billion with a net profit margin of 14.9%.


Cntd….. With innovative technology and solutions, this company is making a constant progress in India. Present in more than 200 cities, this company is making constant progress in global markets to maintain its leading position


Microsoft A subsidiary, named as Microsoft corporation India Private Limited, of the U.S. based Microsoft Corporation, one of the software giants has got their headquarter in New Delhi. starting its operation in the country from 1990. The net income of Microsoft Corporation grew from $14,569 million in 2010. working in close association with


Cntd…… all the stakeholder including the Government of India ,the company is committed towards the development of the Indian software as well as I.T.

MNC is a Boon or Bane?:

MNC is a Boon or Bane?

Some points in favour of MNC:

Some points in favour of MNC Made an entire world a global village Inter connectivity increased among nation Reduce technological gap Quality products Monopoly reduction Employment generation


Cntd…… Healthy competition Generation of FDI Generation of income Brain gain instead of brain drain Developed our life style Recruit people on the basis of their talent


Cntd…….. Initiating a higher level investment Natural resources are utilized properly Foreign exchange gap reduction

Points against MNC:

Points against MNC Indigenous product and small organization suffer Native corporation crumbled under the competition of MNC National security threat No profit except taxes remain in home country


Cntd…… Global warming evolved due to MNC Exploit resources Human resource practices are not good Caused to restless life style

Some Suggestion should be taken by Govt.:

Some Suggestion should be taken by Govt. Government side threat of nationalization Strict law and their compliance More concentration of govt. on indigenous industries No compromise on the cost of growth

Conclusion :

Conclusion It is a route or way to move India forward which have been failed early 90’s. If it is properly regulate by government.

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