What is MNC and its role?

What is MNC and its role?

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.

What is the role of MNC in economic development?

Multinational companies play a vital role in the economy of a country in modern world since many years. These companies promote the growth of trade due to the bulk investment of foreign capital in a country. The direct foreign investment in the industrial sector reduces the amount of commercial debt of a country.

What do you mean by MNC and their working in India?

Multinational Corporations or Multinational Companies are corporate organizations that operate in more than one country other than home country. LTI, TCS, Tech Mahindra, Deloitte, Capgemini are some of the examples of MNCs in India. …

What is MNC short answer?

An MNC is a company that owns or controls production in more than one nation. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources.

What are the objectives of MNC?

Objectives of Multinational Corporations : Minimize the cost of production, especially the labour cost. Capture the lucrative foreign market against international competitors. Avail the competitive advantage internationally. Achieve greater efficiency by producing in local markets and then exporting the products.

What is MNC and its advantages and disadvantages?

Accesses to Labor – MNCs enjoy access to cheap labor, which is a great advantage over other companies. Overall Development – The investment level, employment level, and income level of the country increases due to the operation of MNC’s. Level of industrial and economic development increases due to the growth of MNCs.

What are the advantages of MNC?


  • Assure Quality Standards.
  • Modern Technology.
  • Research and Development.
  • Growth of Industry.
  • Expand Exports.
  • Best Utilization of Resources.
  • Expand Local Industries.
  • Management job Opportunities.

What are the characteristics of MNC?

Characteristics of a Multinational Corporation

  • Very high assets and turnover.
  • Network of branches.
  • Control.
  • Continued growth.
  • Sophisticated technology.
  • Right skills.
  • Forceful marketing and advertising.
  • Good quality products.

What is the role of MNC in India?

MNCs provide employment opportunities and helps in solving the unemployment issue to some extent. As the wages will in turn be spent on buying goods and services in India, it’ll be helpful for the Indian economy. The government will also get revenue in the form of taxes that MNCs pay.

Which is the best MNC in India?

Top 10 MNC Companies in India

  • Citibank India.
  • Coca-Cola India Pvt. Ltd.
  • Google India Pvt. Ltd.
  • Hewlett-Packard India Sales Pvt. Ltd.
  • IBM India Pvt. Ltd.
  • Microsoft India Corporation India Pvt. Ltd.
  • PepsiCo India Holdings Pvt. Ltd.
  • Sony India Pvt. Ltd.

What are the financial goals of an MNC?

However, the commonly accepted objective of an MNC is to maximize stockholder wealth on a global basis, as reflected by stock price. Managers of an MNC may make decisions that conflict with the firm’s goal to maximize shareholder wealth.

What are the role of MNCs in India?

MNCs can bridge the gap between the requirements of foreign capital for increasing foreign investment in India. The liberalized foreign investment pursued since 1991, allows MNCs to make investment in India subject to different ceilings fixed for different industries or projects.

What is the role of multinational corporations in the Indian economy?

It is the giant multinational corporate firms (MNCs) which spend a lot on the development of new technologies can greatly benefit the developing countries by transferring the new technology developed by them. Therefore, MNCs can play an important role in the technological up-gradation of the Indian economy.

Which is an advantage of investment by MNCs?

Moreover, the advantage of investment by MNCs lies in the fact that servicing of non-debt capital begins only when the MNC firm reaches the stage of making profits to repatriate. Thus, MNCs can play an important role in reducing stress and strains on India’s balance of payments (BOP).

How does a MNC affect the local economy?

Although MNCs provide capital, they may lower domestic savings and investment rates by stifling competition through exclusive production agreements with the host governments. MNCs often fail to reinvest much of their profits and also they may inhibit the expansion of indigenous firms.