MULTINATIONAL

COMPANIES

AN ITS IMAPCT ON
COUNTRIES
 CONTENT
n CONTENT:
n INTRODUCTION:
n HISTORY:
n MULTINATIONAL CORPORATION,
DEFINITION:
n MARKET IMPERIFICATION:
n INTERNATIONAL POWER:
n IMPACT ON COUNTRIES:
n CONCLUSION:
 INTRODUCTION
A multinational corporation (MNC) or
transnational corporation (TNC), also called
multinational enterprise (MNE), is a corporation
or enterprise that manages production or delivers
services in more than one country. It can also be
referred to as an international corporation.
 History
* The first Indian MNC was East
India company ,headquarter was
situated in London ,founded in 1600
and defuncunct in 1858,formally
dissolved in 1873.
* Company rule in India, which
effectively began in 1757 after the
Battle of Plessey.
*The Company itself was finally
dissolved on 1 January 1874, as a
result of the East India Stock
Dividend Redemption Act.
The East India Company
traded mainly in :
n Cotton, silk, indigo dye.
n Salt petre, tea, and opium.
“However, it also came to rule large
swathes of India, exercising military
power and assuming administrative
functions, to the exclusion,
gradually, of its commercial
pursuits.”
 EXPANSION
n THE COMPANY BEGAIN TO EXPAND AS THEY HAD
CAPITAL FROM THERE IMPERIAL PATRONAGE .
n STARTING FROM GOA, CHITTIONG, BOMBAY
n THEN THE SETUP A FACTORY IN SURAT ,MADRAS ,
BOMBAY
n DURING THE MUGHAL PERIOD WITH THE GRACE
OF MUGHAL EMPERORS THEY FURTHUER
EXTENDED THEIR NETWORK TO BENGAL AND
NEAR BY REGIONS.
 GLOBALISAION
n MNC’S CREATE A PLATFORM WERE
THE HOST COUNTRY IS BENIFETED
n CAN ALSO BE STATED AS
LIBERLISATION RESULTING IN
GLOBALISATION
n GLOBALISATION FURTHER RESULTS IN
EXPOSURE OF THE HOST PROVIDING
OPPORTUNITIES
 STRATEGY USED
n Diversification is the type of MARKETING
Strategy used by the Multinationals firms as it
allows them to play with different products in
different markets
n But there are some who believe in just to walk
along the line. For eg: Macdonald’s , FedX,
etc.
 IMPACT ON COUNTRIES:
n A large amount of tax collected through mnc’s .
n Increased revenue.
n Economic health improved .
n Employment increased.
n Foreign relation increased.
n Foreign currency maintenance and dealing efficiency
increased .
n Market sentiments improved.
n Demand supply scenario balanced.
n Available resources used effectively and generate income
for countries and other domestic companies.
n Import export policies implemented effectively and
export increased so country benefited in dual mode.
 Work out before setting up:
n Technical Analysis of all sites available in those
countries.
n Entry in SEZ of these country.
n SWOT Analysis of offered products/business .
n Determining risk and return portfolio.
n Segmentation according to their
culture/lifestyle/environment.
n Duties payable on transactions , etc.
 Conclusion:
n A mnc gives many advantages to domestic
companies through purchasing of raw
material and resources. a country benefited
in term of employment and economic health
help to reforms . a new company uses mnc’s
network to expand their business. Industrial
growth and gdp Effected so, mnc’ become a
milestone in developing countries.