KENDRIYA VIDYALAYA GOLE MARKET NEW DELHIMADE BY :-PRAFUL MATHUR

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Praful mathur XI-c 15Multinational company

Multinational company

About multinational

company

As the name suggest , any company is referred to as a multinational company or corporation (M.N.C) when that company manages its operation or production or

service delivery from more than a single country.

A M.N.C is one, which has its operational headquarters based in one country with several other

operating branches in different other countries.

The country where the headquarter is located is called the home country.

M.N.C. playing an important role in Globalization and international relation between two countries.

The budget of some of the M.N.C.s are so high that at times they even exceed the G.D.P.(Gross Domestic

Product) of a nation.

The other countries with operational branches are called the host country.

Profit of

Mncs in

India

It is too specify that the companies come and settle in India to earn profit.

More over Indians wide market for

different and new goods and services due to the ever increasing population and the

varying consumer taste.

The Govt. FDI polices have some how benefited them and dawn their attention

too.

The restrictive policies that stopped the company’s inflow are however withdrawn and the country has shown much interest to bring in foreign investment

here.

Following are the reasons why M.N.Cs consider India as a preferred destination for business :-

HUGE MARKET POTENTIAL OF THE COUNTRY.FDI ATTRACTIVENESS.MACRO – ECONOMIC STABILITY

Why Multinational

Companies are in

India

It has also got one of the fastest growing economies in the world.

The policy of the government towards FDI has also played a major role in

attracting the multinational companies in India.

India had a restrictive policy in terms of foreign direct investment.

As a result , there was lesser number of companies that showed interest in investing in

Indian market.

Government , now days , makes continuous efforts to attract foreign investment by relaxing

many of its policies.

As a result , a number of multinational companies have shown interest in Indian

market.

Features of multinational companies

GIANT SIZE :- The assets and sales of multinational companies are quite large. These companies operate

on large scale. INTERNATIONAL OPERATIONS :- A multinational

corporation operates in more than one country . It has its branches , factories , offices in several countries. It

operates through a network of branches and subsidiaries in host countries.

PROFESSIONAL MANAGEMENT :- A multinational corporation employs professional experts ,

Specialiosed people and keeps updating the knowledge and skill of their employees by impacting

them training from time to time.

CENTRALISED CONTROL :- The branches of multinational companies spread in different countries are controlled and managed from the headquarters

located in home country. OLIGOPOLISTIC POWERS :- oligopolistic means

power in the hands of few companies only . Due to their giant size the multinational companies occupy a

dominating position in the market. SOPHISTICATED TECHNOLOGY :- Multinational

companies make use of latest technology to supply world class products . They employ capital – intensive technology and innovative techniques of production.

Merits of Multinational Companies

oEMPLOYMENT OPPORTUNITIES :- Multinationals create large scale employment opportunities in host countries . They increase the investment level and

thereby employment and income level.

o ADVANCE TECHNOLOGY :- The multinational companies bring the advance technology to

developing countries. The advance technology helps developing countries to improve the quality of

products and reduce costs.oGROWTH OF DOMESTIC FIRMS :- The

multinational companies stimulate the growth of local enterprises. These local enterprises can act as

suppliers and ancillary units of multinational firms.

o FORIGN CAPITAL :- Developing countries suffer from shortage of capital required for rapid

Industrialization .

oSTANDARD OF LIVING :- By providing superior products and services , the MNCs help to improve

living standard in host countries.

oWORLD ECONOMY :- MNCs help to integrate national economy into world economy . They

encourage international brotherhood and cultural exchange through international business.

Demerits of Multinational Companies

• DIREGARD OF NATIONAL OBJECTIVES :- The priorities of developing countries are strategic control

and development of back word regions, where as multinational companies do not give any importance

to these objectives.

• RESTRICTIVE CLAUSES :- Due to large resources and bargaining power MNCs introduce restrictive clause in collaboration agreement. MNCs do not

transfer research and development training and other facilities to host countries.

•ALIEN CULTURE :- The MNCs propagate their own culture to sell their goods .

s wo T

Strengths

Low Cost Well Developed Infrastructure

Weakness Location is often very distant Lack of Transportation facilities Relative Inflexibility

Opportunities

Leverage Government Attract new industries

Threats

Govt. restrictionsQuotas

Top 10 Multinational Companies

1 |MicrosoftCorporate office Redmond, Washington, U.S Turnover 74 Billion DollarEmployees 97000+ Business Software Sector Private Sector Career Website careers.microsoft.com/

IBMCorporate Office Armonk, New York, U.S.Turnover 107 Billion Dollar Employees 434246+ Business Computer Hardware , SoftwareSector Private Sector Career Website www-07.ibm.com/in/careers

Nokia CorporationCorporate Office Espoo , Finland Turnover 39 Billion DollarEmployees 97800+ Business Internet , Software Sector Private Sector Career Website www.nokia.com

PepsiCo Corporate Office New York , U.S Turnover 67 Billion Dollar Employees 297050+ Business Food and BeverageSector Private Sector

5 |

Ranbaxy Laboratories Ltd.Corporate Office Gurgaon , Haryana, India Turnover 2 Billion Dollar Employees 10000+ Business Pharmaceuticals Sector Private Sector Career Website www.ranbaxy.com/careers

Nestle Corporate Office Vevey , Switzerland Turnover 86 Billion Dollar Employees 325000+ Business Food Processing Sector Private Sector Career Website www.nestle.in/jobs

CocaColaCorporate Office Midtown Atlanta, Georgia Turnover Unknown Employees 150500+ Business Beverage Sector Private Sector Career Website www.coca-colacompany.com/careers

Procter & GambleCorporate OfficeCincinnati, Ohio, USA Turnover 84 Billion Dollar Employees 125000+ Business Consumer Goods Sector Private Sector Career Website india.experiencepg.com

Sony Corporation

Corporate Office Minato, Tokyo, Japan Turnover 80 Billion Dollar Employees 162000+ Business Conglomerate Corporation Sector Private Sector Career Website www.sony.com

Citigroup IncCorporate Office Manhattan , New York, U.S. Turnover 70 Billion Dollar Employees 258500+ Business Banking & Financial services SectorPrivate SectorCareer Website careers.citigroup.com

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