PRESENTED BY: BIKESH KUMAR SHARMA , HEMENDRA SINGH & SHIVANI SHASTRI

INTRODUCTION
A Multinational corporation (MNC) or multinational enterprise (MNE) is a corporation that is registered in more than one country or that has operations in more than one country. It is a large corporation which both produces and sells goods or services in various countries. It can also be referred to as an international corporation. They play an important role in globalization.

INDIAS FIRST MNC

For India, the first multinational company was the British East India Company. The Company was granted a Royal Charter by Queen Elizabeth in 1600, making it the oldest among several similarly formed European East India Companies.

DEFFERENCE BETWEEN MNC AND TNC

MNC (multi national Corporation) is defined as an enterprise which is headquartered in one country but has operations in one or more countries. TNC ( Trans National Company) are those firms which are formed by the merger of two firms of approximately the same size, that are from different countries.

Difference between a global and a multinational company

Multinational companies have investment in other countries, but do not have coordinated product offerings in each country. More focused on adapting their products and service to each individual local market. Global companies have invested and are present in many countries. They market their products through the use of the same coordinated image/brand in all markets. Generally one corporate office that is responsible for global strategy.

List of top mnc

1975 to 1985

1865 to 1871

1933

1968

1886

1946

1880

1892

1964 as blue ribbon 1978

1812

TYPES OF MNC
On the basis of Investment 1. Associates 2. Subsidiaries 3. Branches

 On the basis of Operations 1. Horizontally Integrated Multinationals 2. Vertically Integrated Multinationals 3. Diversified Multinationals

 On the basis of Management Operation 1. 2. 3. 4. Ethnocentric Firms Polycentric Firms Regiocentric Firms Geocentric Firms

ROLES OF MNC
MNCs help to increases the investment level & thereby the income & employment in host country. The transnational corporations have become vehicles for the transfer technology, especially to developing countries. They also initiate a managerial revolution in host countries through professional management and employment of highly sophisticated management techniques. The MNCs enable that host countries to increases their exports & decreases their import requirements. They work to equalize cost of factors of production around the world. MNCs provide and efficient means of integrating national economies. The enormous resources of multinational enterprises enable them to have very efficient research & development systems. Thus, they make a commendable contribution to inventions & innovations. MNCs also stimulate domestic enterprise because to support their own operations, the MNCs may encourage & assist domestic suppliers. MNCs help to increase competition & break domestic monopolies.

Impact of multinational companies on the host country

Positive Impact Negative Impact

Positive impact
Improving the balance of payments Providing employment Source of tax revenue Technology transfer Increasing choice National reputation

Negative Impact
Environmental impact Access to natural resources Uncertainty Increased competition Crowding out Influence and political pressure Transfer pricing Low-skilled employment Health and safety Export of Profits Cultural and social impact