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Multinational corporation(MNCs)

Presented by
Ramya Sri.B(PGDMA-0917)
Concept
Firm that operates in more than one country i.e. multiple
countries.
Criteria to be fulfilled to be an MNC:
1. The firm should own or control operations in multiple
countries.
2. Should generate substantial revenue by its operations from
foreign countries.
3. Should employ workforce from multiple countries including
employees at senior levels.
4. Should have management perspective and a vision of
multinational operations.
Types of Multinationals
Associates
Subsidiaries
Branches
Types of Multinationals
Horizontally integrated
Vertically integrated
Diversified

operations
Types of Multinationals
Ethnocentric firms
Polycentric firms
Regiocentric firms
Geocentric Firms

Management orientation
Impact of MNCs on host economies
Bring in FDI
Transfer of Technology
Promote competition
Promote R&D
Benefit customers
Promote exports in Host economies
Impact of MNCs on host economies
Influencing Host country Government decisions.
Transfer of inappropriate technology.
Dumping of obsolete technology.
Cultural Imperialism.
Exploitation of Host country Resources.
Promotes as agent of Neo colonialism.

Negative impact
Thank you

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