Digital Library of GLT Saraswati Bal Mandir. 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.

3. Multinational consists of two different words ‘multi’
& ‘national’. Multi means many & national means
countries or nations. So multinational means a
company which operates in many countries. Such a
company has branches, factories & workshops in
different countries.

4. 1.C o c a Co l a
2.B M W
3.N i k e
4.R e e b o k
5.S o n y
6.L .G .
7.S a m s u n

5. Giant Size: The assets & sales of multinational
companies are quite large. These companies operate on
large scales.
For example; The physical assets of IBM (International
Business Machines) exceeds 8 Billion$
International Market: Due to vast resource and
excellent marketing skills, a Multinational corporation
has access to international markets. It is able to sell its
products/services in different countries.

6. Sophisticated Technology: Multinational companies
make use of latest technology to supply world class
products. They employ capital-intensive technology &
innovative techniques of production.
Professional Management: A multinational
corporation employs professional experts, specialized
people & keeps updating the knowledge and skills of their
employees by imparting them training from time to time.
It employs professionals to handle the advance
technology.

7. Factor
mobility.
Development in
communication
technology.
Economic
reforms.
Risk
minimize.
Growth
urge.
Market
potential.

8. Fastest Growing economy
Huge market potential
FDI attractions
Labour competitiveness
Macro economic stability

9. •
•
•
•
Work culture for employees.
Systems.
Training and Learning.
Technology – especially concept of working with
better technologies.
• Safety, Health and Environmental Learning's.
• Culture and Ethos.
• Excellent training grounds for many
entrepreneurs.

10. Ho
c o
t h
o f
mu
c o
s i
me C o u n t r y i s a
u n t r y i n wh i c h
e h e a d q u a r t e r s
t h e
l t i n a t i o n a l
mp a n y i s
t u a t e d & t h e

11. 1. The home country can obtain raw materials and
labours at comparatively lower cost.
2. It can export components & finished products.
3. It can acquire technical and managerial
expertise of foreign nation.

12. 1.Providing employment opportunities.
2.Multinationals will bring with them technology
and production methods that are probably new
to the host country.
3.The presence of one multinational may improve
the reputation of the host country.

13. 1. DEPLETION OF NATURAL RESOURCES: MNC’s cause
rapid depletion of some of the non-renewable
natural resources in host countries.
2. ALIEN CULTURE: The MNC’s propagate their own
culture to sell the goods
For example: MNC’s are developing the habit
among peoples of eating synthetic food etc.

14. 3. Creation of Monopoly: MNC’s join hands with big
business houses & give rise to monopoly &
concentration of economic power in host countries
For example: Coca-Cola company took over Thums
up & Walls company took over Kwality Ice creams.
4. Disregard of National Objectives: The MNC’s
prefer to invest in profitable projects. They fail to
solve the chronic problems such as poverty etc. of
Host Countries.

15. • Domestic market like India versus International
expansion.
• Language .
• Culture .
• Autonomy to “local” managers.
• Styles of doing business .
• Handling of potential liabilities related to Labour,
IPR.

16. Foreign direct investment (FDI) is a direct
investment into production or business in a country
by an individual or company in another country,
either by buying a company in the target country or
by expanding operations of an existing business in
that country.

17. 1. Greenfield investment (a new operation).
2. Brownfield investment (expansions or reinvestment in existing foreign affiliates
or sites).
3. Mergers & Acquisitions (M&As).
4. Privatization & equity investment.
5. New forms of investment (joint ventures,
strategic alliances, licensing).

18. 1. Helps in economic development of the country
in which invested.
2. Helps in creating jobs and increases
employment.
3. Resource transfer, countries are able to learn
newer forms of technologies and skills.
4. Increase in productivity due to newer
equipment.

19. 1.FDI hinders domestic investment, demand for
domestic investment decreases.
2. Exchange rates increasing in one and reducing in
the other.
3. Capital intensive from the investors point of
view.
4. Investment in certain areas is banned in foreign
markets.

20. 1. Walmart the worlds largest retailers by sales for foreign
investment in retail business.
2. Bharti Retail a subsidiary that runs ‘Easy day’ with
managerial support for walmart has stopped expanding its
operation since Nov. 2012.
3. They are facing bribery allegations, It has expressed its
inability to government on meeting sources from small scale
industries.
4. Walmart has put its expansion plans for India on hold,
closed down more than dozen properties.

21. FDI = Foreign Direct Investment
(measure of foreign ownership of
productive assets, such as factories,
mines and land. )

27. It refers to getting a business task done from an outside
agency.
# Benefits of Outsourcing
1.Concentration on Core Competence.
2. Reduction in Cost.
3. Helps to avoid Labour Problem.
4. Benefit of latest development.

28. Indian companies have a long history of
providing services for the IT, ITES& KPO
industry.
Choose India offshore partner for your KPO
requirements & get access to the offshore
KPO advantages that India offers.

29. 1. It creates value for client.
2. It increases efficiency & cost saving
3. It provides error free works.
4. It lead to speedy delivery.
5. It assures the security of your confidential
information

30. A multinational company may not operate in all
of the countries in the world, choosing instead to
operate and even sell its goods and services in
only certain parts of the world.

31. The multinational play both
positive & negative roles. In
recent years India has adopted
an open arm policy for MNCs.
But hopes of India are not
fulfilled. Most of the MNCs
have entered low tech areas
such as soft drinks,