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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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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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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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THANK YOU