MNC

Introduction

Factors contributing to the growth of MNC

Expansion of market territory. Market Superiorities.

Financial Superiorities.
Technological Superiorities. Production Innovation.

Advantages of MNC to the Host Countries

Generation of employment. Economic development. Managerial revolution. Foreign Capital. Advanced Technology.

Healthy Competition.
Growth of Domestic Firms. Standard of Living.

Disadvantages of MNC to the Host Countries

Payments of Dividend and Royalty. Distortion of Economic Structure. Political Interference. Technology Transfer Not Necessarily Conducive to Development.

May cause unemployment in the home country.

Depletion of resources.

Disadvantages of MNC to the Home Countries

Causes unfavourable BOP. Unemployment. Neglecting home countrys economic development

Some Indian Multi National Companies

Tata Motors sells its passenger car Indica in UK the through a marketing alliance with Rover and has acquired a Daewoo Commercial Vehicles unit giving it access to markets in Korea and China. Ranbaxy is the ninth largest generics company in the world. An impressive 76 percent of its revenues come from overseas Dr Reddy's Laboratories became the first Asia Pacific pharmaceutical company outside Japan to list on the pharmaceutical company outside Japan to list on the New York Stock Exchange in 2001.

 Asian Paints is among the 10 largest decorative paints makers in the world and has manufacturing facilities across 24 countries. Small auto components company Forge is now the world's second largest forgings maker after acquiring Carl Dan Peddinghaus last year. Its workforce includes Japanese, German, American and Chinese people. It has 31 customers across the world and only 31percent of its turnover comes from India. About 80 percent of revenues for Tata Consultancy Services from outside India. Infosys has 25,634 employees including 600 from 33 nationalities other than Indian. It has 30 marketing nationalities other than Indian and 26 global software offices across the world and 26 global software development centres in the US, Canada, Australia,UK and Japan.

 About Aditya Birla Group The Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its performance ethic creation for its multiple stakeholders. A premium conglomerate, the Aditya Birla Group is a dominant player in all the sectors in which it operates such as viscose staple fiber, non-ferrous metals, cement, viscose filament yarn, carbon black, chemicals, and fertilizers.