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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 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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 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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 THANK YOU

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