Role of Multi National Companies in Indian Context

8/3/2019 Role of Multi National Companies in Indian Context

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A Multinational Company (MNC) is acorporation or an enterprise that managesproduction or delivers services in more thanone country. It may also be called an

international corporation . MNC as acorporation that has its ManagementHeadquarters in one country, known as thehome country, and operates in several othercountries . MNCs are very useful in ThirdWorld Countries Because These Countriesare not very developed .


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Multinational Companies are companies those

have so many branches in other countries. MNCs

have played an important role in Globalization.These Companies are primary players today in the

world's most dynamic industries. These

Companies effect every kind of work of everycountry with their new Techniques and new type

of products.


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The East IndiaCompany was the firstMultinationalCompany in India. ThisCompany came inIndia with the motiveof Business and findthe very vast range of

raw material in Indiaand plan to take it toEngland and producedproducts.


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Revenue collection

Army and civil

services

Trade

Justice


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Education

Post and Telegraph

Railways

Social Reformer


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This Company made Indian people Slaves

Cruelty

Divide and rule

Took costly wealth of India

Provide cheap labour rate to Indian people

Indians have only a part of their wealth Partition

Provide very poor quality of food for Indian

People


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There are a number of reasons why theMNCs coming down to India. India hasgot a huge market. The labour in India is

not costly. With the growing populationthe needs of people are increasing. Thatis why MNCs come to India to provide

their products and settle in India to earnprofit. The second thing is India has arich variety of raw material that can be

helpful in the business of MNCs.


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In a diverse and complex country like India, itsdifficult to impart generic conclusions thatcould be used by those wanting to do businesshere. Regionalism, religion, language andpersonal values are all factors that need to betaken into account when doing business in

India. Foreign Companies need Governmentapproval for doing Business in India. Todaythere are 3704 MNCs in India.


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Hyundai

Coca Cola

LG

Samsung
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Dell

Reliance

Tata

Sony


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Panasonic

Microsoft

Hewlett-Packard

Swaraj Mazda


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Skilled labour

New technology

Research and development

Help to Local Industries

Management Opportunities

National Development

Employment increased

Provide new type of products

Provide products at cheap rate


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Destroy local business

Environment pullution

Increase artificial demand

Impose their Culture

Work for Self Interest

Threats for Indian Industries

Unemployment in home country

Cheap and low quality product

Increasing the cost of land


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Nowadays there are so many MultinationalCompanies in India. These Companies havetheir effect on Indian Companies. These

companies provide their products at a cheaprate in better quality than the IndianCompanies. Indian Companies can notcompete with these companies because IndianCompanies have not so much developedtechnique to compete with them. MNCs hiredlabour at high rate than the Indian Companiesprovide. So Indian Companies face a lot oftrouble.


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Role of Multi National Companies in Indian Context

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