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    MNC Vs Indian Co

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    Sourav Roy
    The document discusses multinational companies (MNCs) and Indian companies. MNCs operate in multiple countries and influence local policies through lobbying. They provide benefits like jobs, products, and taxes, but can also cause issues like technological unemployment. Indian companies are registered domestically and provide local jobs, but are smaller in size and revenue. While MNCs and Indian companies both have advantages and disadvantages, the document concludes that many foreign subsidiaries in India are self-sufficient and do not significantly benefit India through technology transfers as initially expected.

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    MNC Vs Indian Co

    Uploaded by

    Sourav Roy
    992 views13 pages
    The document discusses multinational companies (MNCs) and Indian companies. MNCs operate in multiple countries and influence local policies through lobbying. They provide benefits like jobs, products, and taxes, but can also cause issues like technological unemployment. Indian companies are registered domestically and provide local jobs, but are smaller in size and revenue. While MNCs and Indian companies both have advantages and disadvantages, the document concludes that many foreign subsidiaries in India are self-sufficient and do not significantly benefit India through technology transfers as initially expected.

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    MNC vs Indian Co

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    The document discusses multinational companies (MNCs) and Indian companies. MNCs operate in multiple countries and influence local policies through lobbying. They provide benefits like jobs, products, and taxes, but can also cause issues like technological unemployment. Indian companies are registered domestically and provide local jobs, but are smaller in size and revenue. While MNCs and Indian companies both have advantages and disadvantages, the document concludes that many foreign subsidiaries in India are self-sufficient and do not significantly benefit India through technology transfers as initially expected.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    992 views13 pages

    MNC Vs Indian Co

    Uploaded by

    Sourav Roy
    The document discusses multinational companies (MNCs) and Indian companies. MNCs operate in multiple countries and influence local policies through lobbying. They provide benefits like jobs, products, and taxes, but can also cause issues like technological unemployment. Indian companies are registered domestically and provide local jobs, but are smaller in size and revenue. While MNCs and Indian companies both have advantages and disadvantages, the document concludes that many foreign subsidiaries in India are self-sufficient and do not significantly benefit India through technology transfers as initially expected.

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    of 13

    MULTINATIONAL

    COMPANIES ARE
    BETTER THAN
    INDIAN
    COMPANIES

    Introduction:
    Multinational Companies (MNC)

    Multinational Corporation (MNC) or


    Transnational corporation (TNC), also
    called Multinational enterprise (MNE)..
    It is a corporation or enterprise that
    manages production or delivers services in
    more than one country. It can also be
    referred to as an international corporation.

    IMPACT
    ON
    LOCAL
    AND
    NATIONAL ECONOMIES BY MNC
    Multinationalcorporationsaffect
    local
    and
    national policies by causing governments to
    compete with each other to be attractive
    tomultinational corporationinvestment in their
    country.
    e.g. - Walmart is an example of a large
    multinational
    corporation
    that
    often
    exertsinfluenceon political processes through
    lobbying, contributions to campaigns, and threats
    of market withdrawal.

    Examples of MNCs
    Honda
    IBM
    Suzuki
    Nestle
    Johnson and Johnson
    Intel
    Nissan

    Indian Company

    A company formed and registered under the

    Companies Act, 1956 (1 of 1956).


    a company formed and registered under any law
    relating to companies formerly in force in any part
    of India (other than the State of Jammu and
    Kashmir and the Union territories specified in subclause (iii) of this clause);
    i. a corporation established by or under a Central,
    State or Provincial Act.
    ii. any institution, association or body which is
    declared by the Board to be a company under
    clause (17).

    in the case of the State of Jammu and

    Kashmir, a company formed and


    registered under any law for the time
    being in force in that State.
    in the case of any of the Union territories
    of Dadra and Nagar Haveli, Goa, Daman
    and Diu, and Pondicherry, a company
    formed and registered under any law for
    the time being in force in that Union
    territory.

    Examples of Indian companies


    Reliance Industries
    Oil and Natural Gas Corporation
    Infosys
    Indian Oil Corporation
    Hindustan Motors
    ICICI Bank
    Tata Steel Steel
    Bharti Airtel

    Advantages of
    Greater level of employment
    opportunities.
    MNCs

    Better and cheaper products are available to the

    consumers.
    The government will also benefit by earning
    more in taxes.
    Provide the host country with foreign exchange.
    Invention of new technologies.
    Strong financial position.
    Increase in infrastructure improvements.
    Helps removal of monopoly and improve the
    quality of domestic made products.

    Disadvantages of
    By introducing MNCs
    new technology, MNCs
    technological unemployment.

    cause

    They adopt capital intensive technique, so machines

    replace workers.
    Local professional cannot access working strategies of
    MNCs.
    Higher sales cost as compared to Indian companies.
    Hurt domestic firms by eliminating competition.
    The host nation may also experience some loss of
    control over its own economy
    Feeling that labour is being exploited by the MNC/
    Outsourcing
    Lost of cultural moorings
    The problem of Dumping

    Advantages of Indian
    Companies
    Less stock market pressure as compared to

    MNCs.
    Cheaper products than that of MNCs.
    Provide employment opportunities to local
    laborers.
    Now listed on the New York Stock Exchange
    and most of them are on NASDAQ.
    Expanded their global outlook by setting up
    centers globally in the US, China, Japan,
    Malaysia etc.

    Disadvantages of
    Indian Companies
    Revenue wise Indian companies are slow

    growing as compared to MNCs.


    Small in size.
    Financial position is also not very strong.
    No much monopoly on things like outsourcing,
    consulting etc.

    CONCLUSION

    Majority of foreign subsidiaries operating in


    India either belong to the U.K. (68%) or the
    U.S.A. (15%).
    Most of the foreign subsidiaries have raised
    financial resources from within India, and
    the transfer of capital from the parent
    company has been marginal.
    A number of foreign companies in India are
    acquiring the character of multi-product and
    multi-industry enterprises.
    The assumption that the entry of MNCs
    would ensure transfer of sophisticated
    technology to developing countries has not
    been found valid in practice.

    THANK YOU

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