Tag: multinational companies - meaning and features

• Access to Consumers – Access to consumers is one of the primary advantages that the MNCs enjoy over companies with operations limited to the smaller region. Increasing accessibility to wider geographical regions allows the MNCs to have a larger pool of potential customers and help them in expanding, growing at a faster pace as compared to others.
• Accesses to Labor – MNCs enjoy access to cheap labor, which is a great advantage over other companies. Taxes and Other Costs – Taxes are one of the areas where every MNC can take advantage. Many countries offer reduced taxes on exports and imports in order to increase their foreign exposure and international trade. 
• 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.
• Technology – The industry gets the latest technology from foreign countries through MNCs which help them improve on their technological parameter.
•  R&D – MNCs help in improving the R&D for the economy.
• Exports & Imports – MNC operations also help in improving the Balance of payment. This can be achieved by the increase in exports and a decrease in the imports.
• MNCs help in breaking protectionism and also helps in curbing local monopolies, if at all it exists in the country.

A multinational corporation or worldwide enterprise is a corporate organization that owns or controls production of goods or services in at least one country other than its home country.

East India Company was the first MNC established in 1600 and after that on March 20, 1602, the Dutch East India Company was the second MNC in India and the largest company. 

Multinational companies have offices and/or factories in different countries and usually have a centralized head office where they coordinated international management.

One of Indian Multinational companies Videocon Industries limited is a large diversified Indian multinational company headquartered in Mumbai. The group has 17 manufacturing sites in India and plants in Mainland China, Poland, Italy and Mexico. It is the third largest picture tube manufacturer in the world. The group is a US$5.5 billion global conglomerate. 

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

Broader Market Base-By opening establishments or offices in several countries, multinationals increase their chances of reaching out to customers on a global scale, a benefit which other companies limited to regional offices and establishments do not have. The access to more customers gives them more opportunities to develop and cater their products and services that will fit the needs of potential customers.

Tax Cuts-Multinationals can enjoy lower taxes in other countries for exports and imports, an advantage that owners of international corporations can take at any given day. And although not all countries can have lower tariffs, there are those that give tax cuts to investors to attract more international companies to do business in these countries.

Job Creation-When international companies set up branches in other countries, employees and members of the team are locals. That said, more people are given employment opportunities especially in developing countries.

MULTINATIONAL COMPANIES IN INDIA -AN ANALYSIS. In the present day world of Globalisation, Multinational Companies have played an important role in the development of home countries where the MNCs are operating. ... Inviting and making ways for MNCs to operate in India will enhance the economic development of the country.