4 INDIAN MNCs
TATA Motors – Daewoo Motors Korea
Ranbaxy – RPG aventis
Ambanis – Flag International
Hindalco – Mount gardon Australia
CHARCTERSTICKS OF GLOBALISATION
1. Multiple Units at different locations of the world with one common ownership.
2. Multiple units with common pool of resources – Money, Credit, Information,
Patents, trade names and control systems
3. Has some common strategy
4. Products presence in different parts of the world.
5. Highly diversified Human resource.
6. Transactions across the globe – Intellectual properties
1. Several regional developments
Emergence of NAFTA, EU, GATT, ASEAN etc.
Economic progress of underdeveloped countries
Removal of barriers and controls
New economy demanding trading across the globe
3. Limited domestic market.
4. To reduce high transport costs
5. Balance out expenses
6. Incentives offered by local Govt.
7. Removal of Trade barriers
8. To access resources unavailable or expensive
MANIFESTATIONS OF GLOBALISATION
(How you see and feel the effects of globalisation)
1. Operations anywhere in the world. (Presence of MNCs in India)
2. Interlinked and independent economics.
3. Lowering of Trading and tariff barriers
4. Effect on related Industries and ancillaries
5. Infrastructural Inputs at International Prices
6. Increase towards Privatization (Engg. Colleges / Courier)
8. Mobility of Skilled resources.
9. Market side efficiency
10. Formation of regional blocs
BENEFITS OF MNCs
It can be seen in two ways. One is from the foreign companies - Host. Another one is,
for our own country – Home.
1. Transfer of: Technology, Capital, Management style, Entrepreneurship
2. Improvement of Balance of Payments (Increase in Dollar deposits in our Banks)
3. Creation of local jobs & career.
4. Improved competition & better utilization of resources
5. Greater availability of products to the locals
6. Access to high quality of managerial / technical talents.
7. Encouragement to world economic unity leading to world harmony & peace.
8. Import of raw materials at low cost, better quality & steady supply.
9. Expertise acquired in Management & Technology
10. Export of components, products and their distribution in Foreign countries.
11. Inflow of income from overseas in profits, royalties, licensing fees , management
PROBLEMS OF MNCs (why opposing MNCs)
There are potential problems that comes along with the benefits of MNCs. Some of
1. Loss of economic sovereignty. MNCs act like another powerful Govt. in
2. Loss of control over our own economy. MNCs decide their business operations ,
investments, flowing back profits that may seriously affect our own economy.
Imagine sudden closure of all MNC Malls all over country.
7. Economic issues. High interest rates, (US stocks and shares affecting Indian Stocks and shares), Capital shortage, export obligations, sending back huge profits, sudden withdrawal of investments.
9. Loss of culture and heritage
10. Difficult to allay the fears of locals and patriots.
11. Objections from Home country citizens.
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