Essay on role of multinational companies in india

The multinational companies in India represent different purpose of companies from different countries. As a result there was lesser number of companies that showed interest in investing in Indian market. Therefore, MNC seem to follow the idea of cost-minimization and profit-maximization more frequently, through process of outsourcing, at the expense of usage of cheap labor of another country, highly-qualified, reliable workers or even workers with specialized skills.

Disadvantages Threats and disadvantages of MNC to the host country must also be properly analyzed. The country relied on external commercial borrowing for development of sectors of economy. Moreover, disposition of input-sources are also taken into criteria of outsourcing as it reduces the cost of transportation and as a result, decrease the cost of production.

This time is specified by a considerable increase in FDI made by Indian multinationals. Moreover, disposition of input-sources are also taken into criteria of outsourcing as it reduces the cost of transportation and as a result, decrease the cost of production.

New enterprises constantly raise inward investments and if the government is capable to fill savings or inflationary gap with the foreign investments, it may achieve its target of economic growth.

Multinational corporations are those large firms which are incorporated in one country but which own, control or manage production and distribution facilities in several countries. Moreover, it may also occur in the long-run, Essay on role of multinational companies in india impact of investment may reduce foreign exchange earnings on the current account.

As a result, the companies constantly enhance the amount of investments and the host country operates within new capital that is being accumulated through the time. Similarly, to take advantages of lower labour costs, and not strict environmental standards, multinational corporate firms set up production units in developing countries.

Essay : Role of MNCs in India

During Modi period the first budget presented in July ,was short to restructure wasteful subsidy programs and to high economic growth. The other school says that there should be some actions of the government to regulate the market but the actions that will be taken obviously should be minimum.

The LPG reforms' was the most important reason. The term from to depicts the first stage of development of Indian MNCs and the second stage is determined by the period from to the present day.

Just complete our simple order form and you could have your customised Business work in your email box, in as little as 3 hours. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing".

Many economists consider particular investments to be the most safest one of the proper shape of external finance for developing countries such as India or China due to the fact that they do not involve a considerable risk and have unlimited liability. India also abolishes non tariff barriers and quotas regularly, reduce tariffs and open up its service sectors, which means India liberalizes its regime and create more conducive environment for trade and foreign investment.

In the recent years, external assistance to developing countries has been declining. Another important role of multinational corporations is that they transfer high sophisticated technology to developing countries which are essential for raising productivity of working class and enable us to start new productive ventures requiring high technology.

Multinational corporation

Therefore, MNCs can play an important role in the technological up-gradation of the Indian economy. They have been responsible for the rapid economic liberalisation in India inthe question of the entry of multinational corporations MNCs has assumed significance.

Finally, the last benefit is reputation of the host country. Multinational corporations help in reorganising the economic infrastructure in collaboration with the domestic sector through financial and technical help. The biggest structural acquisitions of India Liberalization of Indian policies concerning FDI, including measures of the provision of automatic permission for the export of capital and permit raising funds for acquisitions abroad, gave new impulses to the expansion of operations of Indian companies.

As mentioned above, some of the imported technologies are inappropriate to the conditions of Indian economy. The impact of MNCs on the development of a country is highly uneven.

Setting up Environment-Polluting Industries: With their vast resources and competitive strength, they can weed out their competitive firms. For example, in India if corporate multinational firms are allowed to sell or produce the products presently produced by small and medium enterprises, the latter would not be able to compete and therefore would be thrown out of business.

However, government should be vigilant against MNCs predatory attitudes. The economy of India is the seventh largest in the world by nominal GDP and the third largest by purchasing power parity.

Role of Multinational Corporations in the Indian Economy! Prior to Multinational companies did not play much role in the Indian economy. In the pre-reform period the Indian economy was dominated by public enterprises. May 30,  · is an American multinational mass media company and is the largest broadcasting and largest cable company in the world by revenue.[2] It is the second largest pay-TV company after the AT&T-DirecTV acquisition, largest cable TV company and largest home Internet service provider in the United States,[9] and the nation 's third largest home telephone service provider.

Role of Multinational Corporations in the Indian Economy

Since there is a free market economic system in India,there are a number of reasons why the MNCs are coming down to policies of the government towards Foreign Direct Investment has also played significant role in attracting the multinational companies In quite a long time,India has a restrictive policy in terms of Freign.

The multinational companies in India represent a diversified portfolio of companies from different countries. Though the American companies-the majority of the MNC in India, account for about 37% of the turnover of the top 20 firms operating in India, but the scenario has changed a lot of late.

Aug 30,  · Essay on Multinational Companies.

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The role and impact of multinational corporations in the world economy. Introduction: Looking around. Before we will start our topic under consideration, let me draw generalized picture form our everyday lives. China, India, and Multinational Enterprises Essay. In the present day world of Globalization, Multinational Companies have played an important role in the development of home countries where the MNCs are operating.

Essay on role of multinational companies in india
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Role of Multinational Corporations (MNCs) in Foreign Investments