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AMITH HATTARKI
What are MNC’s?
MNC’s are huge industrial organizations which
extend their industrial and marketing
operations through a network of their
branches or their Majority Owned Foreign
Affiliates.
ØForeign Aid:-
Such Aid is that it is made available on
concessional term so that the interest rate is
lower and the grace and maturity period are
longer.
Organization of Multinational
Corporations
Multinational company can organize its operations
in different countries through either of the
following alternatives:
Ø Branches
Ø Subsidaries
Ø Franchise Holders
Marketing superiorities.
Financial Superiorities.
Technological Superiorities.
Product Innovations.
Advantages of MNC’s
MNC’s have become vehicles of technology to
the developing countries
Greater employment and career opportunities
are provided by these MNC’s.
MNC’s make commendable contribution to
inventions and innovations in the host country.
Practice of MNC’s bring to the host country,
the latest technique in the field of
management.
Varity of goods and services produced for local
customers.
Disadvantages of MNC’s
MNC’s create monopolies in the market and
eliminate local competitors.
MNC’s may create depletion of resources due
to its continues use by these overseas
companies.
MNC’s generally carry out their R&D in their
home country and supply to the host country.
MNC’s generally import huge raw materials
due to its continuous use by these overseas
companies.
Examples of MNC in India
NK YO U
T HA