Mnc

Multi National Companies (MNC)

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Multinational corporate structure  Horizontally integrated multinational corporations manage

production establishments located in different countries to produce the same or similar products. (example: McDonald's)  Vertically integrated multinational corporations manage

production establishment in certain country/countries to produce products that serve as input to its production establishments in other country/countries. (example: Adidas)  Diversified multinational corporations manage production

establishments located in different countries that are neither horizontally nor vertically nor straight, nor non-straight integrated. (example: Microsoft or Siemens A.G.)

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Micro-multinationals  A new breed enabled by Internet based communication tools.  Employees, clients and resources located in various countries.  Use of internet, cheaper telephony and lower traveling costs.  Internet tools like Google, Yahoo, MSN, Ebay, Skype and Amazon

make it easier for the micro-multinationals to reach potential customers in other countries.  Service sector micro-multinationals, like Indigo Design &

Engineering Associates Pvt. Ltd.

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CONTENTS What is an MNC? Benefits & Threats to host countries Threats to MNC MNC in INDIA & its advantages India’s Big Dream

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Definition  A multinational corporation (MNC) is a business with extensive international operations in more than one foreign country.

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Benefits to host countries  MNC’s generate jobs &income  Training of local workers in new & potentially

transferable skills  Technology transfer  Cost reduction

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India’s Big Dream  Harnessing the global trends by encouraging the MNCs

to engage in product innovation for local consumers represents a big challenge in India.  Policy-makers, industry leaders and academic institutes

need to work together to create and disseminate a list of "dream innovations" that will inspire people.  The development of Tata Motor's Rs 1 lakh car provides

a powerful example

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International powers of MNC’s  International - Large MNC’s influence

in international relations  Tax competition- Tax breaks, pledges

of govt. assistance etc.  Market withdrawal-Eg. Pharmaceutical

companies  Lobbying & Patents

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Threats to MNC  Nationalization  Lack of Govt. assistance  Opposition by local traders.

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MNC In India  MNC in India are attracted to:  India’s large market potential  Labor competiveness  FDI attractiveness

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MNC In India  MNC in India represent a diversified portfolio of companies representing

different nations.

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Advantages of MNC in India

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THANK YOU

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