MULTINATIONAL

CORPORATION
(MNC )

Presented By Mehul Chauhan

2120931021
INTRODUCTION
Every country is not gifted with all
the Resources, So there is need of
International Business in order to
Export the resources or any good or
services which is abundant in our
country and to import the resources
which is not abundant in our country.
 WHAT IS MULTINATIONAL
CORPORATION ?

A multinational corporation (MNC) has facilities and other assets in at least

one country other than its home country. A multinational company
generally has offices and/or factories in different countries and a
centralized head office where they coordinate global management. Some
of these companies, also known as international, stateless, or
transnational corporate organizations, may have budgets that exceed those
of some small countries.
 KEY TAKEAWAYS OF MNC’s ARE :
➢Multinational corporations participate in business in two or more
countries.

➢MNC can have a positive economic effect on the country where the
business is taking place.

➢Many believe manufacturing outside of the U.S. has a negative

effect on the economy with fewer job opportunities.

➢Transnational business is considered diversifying the investment.

 TYPES OF MULTINATIONAL
CORPORATION ARE :
There are four categories of multinationals that exist. They include:
1. A decentralized corporation with a strong presence in its home
country.

2. A global, centralized corporation that acquires cost advantage

where cheap resources are available.

3. A global company that builds on the parent corporation’s R&D.

4. A transnational enterprise that uses all three categories.

FEATURES OF MULTINATIONAL
CORPORATION ARE :

❑Huge assests and Turnover.

❑International operation through a network

of Branches.

❑Unity of control.

❑Professional Management.

❑Best Quality Products.

❑Advance and Sophisticated Technology.

❑Aggressive advertising and Marketing.

Merits vs demerits
ADVANTAGES DISADVANTAGES

Access to Consumers – Access to Consumers is one of the Laws – One of the major disadvantage is the strict and stringent
primary advantages that the MNC’s enjoy over companies laws applicable in the country.
with operations limited to smaller region.

Accesses to Labor - MNS’s enjoy access to Cheap Labor, Intellectual Property – Multinational Companies also face
which is great advantage over other companies. Some of the issues pertaining to the intellectual property that is not always
countries where cheap labor is available is China, India and applicable in case of purely domestic firms.
Pakistan.

Taxes and other Costs – Taxes are one of the areas where Political Risks – As the Operations of the MNC’s is wide spread
every MNC can take advantage. Many countries offer reduced across national boundaries of several countries they may result
taxes on exports and imports in order to increase their in threat to the economic and political sovereignty of host
foreign exposure and international trade. countries.

Overall Development – The investment level, employment Loss to Local Businesses – MNC products sometimes lead to
level and income level of the country increases due to the the killing of the domestic company operations. The MNC’s
operation of MNC’s. Level of industrial and economic establishes their monopoly in the country where they operate
development increases due to the growth of MNC’s. thus killing the local businesses which exists in the country.
MAJOR TYPES OF MNC’s IN INDIA ARE: