Prepared byAhemad samim quadri

What is Multinational companies Characteristics Nature of Multinational company Worlds top multinational companies Indians multinational companies Goals of Multinational companies Goals of host Governments Advantages and disadvantages Conclusion

 when

a company operating in a home nation establishes its subsidiary in other nations(host nations), it becomes an MNC and there starts the process of globalization where in a local company serves the entire world with its products and services.

Exports products to foreign countries. Establishes sales organisation abroad. Licenses use of patents and technology to foreign firms that make sell the mncs products. Establishes foreign manufacturing facilities, but important decision about such matters as product design marketing and finance are made at the home office. Gives foreign production facilities substantial autonomy but still reserves some important for home office

Exxon mobil Wal mart stores Royal Dutch shell BP General motors Chevron Dailmlerchrysler Toyota motors Totai

US US Netherlands Britain US US Germany Japan France

Fortis

Belgium

Company acquired Tata steel Reliance industries Tata motors Ranbaxy Patni computers Wipro Infosys Tata chemicals Bharat forge

Foreign company Nat steel, Corus Flag Telecom Daewoo RPG Aventis Cymbal Corp Nerve wire inc Expert information service Indo macros phosphne Carl Dan Peddinghams

Manufacture in those countries where it finds the greatest competitive advantage. Buy and sell anywhere in the world to take advantage of the most favorable price to the company Obtain a high and rising return on invested capital Maintain control of important decision Encounter fewer barriers in host countries

 Achieve

economic growth Achieve full employment of pepole and resources Improve managerial and worker skill Maintain price stability Develop a favorable balance of trade Improve technological development Control national security decision Advance the quality of life of its people Develop and maintain social and political stability

 Failure

in transfer of technology. Effect the dicission making process in the host countries. Effect domestic enterprises.. Market leadership by hook or crook. Invest in low priorities and high profit sectors.

 MNCs MNCs

have some good effects and vice-versa help the host countries to increase their exports and decrease their imports requirement. It may develop ancillaries in the host countries. It can make substantial contribution to national and host countries by way of duties and taxes. It can increase the comptition in the host countries and thereby break domestic monopolies. It cause fast depletion of some non-renewable resources in the host countries.