BUSINESS ENVIROMENT

INTRODUCTION
Giant enterprises with their managerial headquarters located in home country while enterprise carries out operations in a number of host countriesas well. A corporation that controls production facilities in more than one country,such facilities having been acquired through the process of FDI.

ORIGIN OF MNCs
MNCs took birth in the early 1860s. After second World War MNCs grown rapidly. Earlier United States has the home of various MNCs. MNCs have been emerging from Developing countries also. For example South Korea has well known MNCs like Samsung, Hyundai, LG and Daewoo.

FEATURES :The features of MNCs are listed below :1. They are huge business enterprises operating in many countries with huge resources and potentially. 2. They are commercial organisations having management,production,marketing and holdings extended to several other countries. 3. They have geocentric ownership and control. 4. Their managerial headquarters are located in one country (home country). 5. They have multinational stock ownership.

BENEFITS
Economical benefits. Technological benefits. Social benefits.

HARMFUL EFFECTS
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 in INDIA
Strong hold over Indian economy. Financial resources for India. Collaborative agreements with Indian industry. Control by government agencies. Areas of interest.

CONCLUSION
MNCs have some good effects and vice-versa MNCs 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.

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