Mnc

GROUP II TEAM MEMBERS VINEETHA CINDHYA DEEPA RENJU SUJIN THOMSON

MAIN CONTENTS Definition of MNC ; Multinational corporate structure ; Corporate hierarchy ; Factors leading to the growth of MNC; Benefits of MNC ; Code of conduct ;

MULTINATIONAL CORPORATION Multinational corporation (or Transnational corporation) (MNC/TNC) : is a corporation or enterprise that manages production establishments or delivers services in at least two countries .

Definition: A multinational corporation is an enterprise that engages in foreign direct investment (FDI) and that owns and controls value added activities in more than one country.

Multinational corporations play an important role in globalization ; some argue that a new form of MNC is evolving in response to globalization: the 'globally integrated enterprise'. MNC’s have existed since1602, in which year the first MNC, the Dutch East India Company, was established.

According to MNCs,it represents a cluster of affiliated firms located in different countries that: ,[object Object]

Draw upon a common pool of resources

Respond to a common strategy,[object Object]

PROCESS OF EVOLUTION MNCs did not merge overnight. Domestic firms after going through various stages of the evolution process, qualify for being called as an MNC. The process of evolution can broadly be grouped in three successive stages. They are: ,[object Object]

Number of countries in which the firm has operations of various sorts

Foreign assets, revenues, employees over total

Proportion of foreign employees, managers, stockholders

HIERARCHY OF MNC ACTIVITIES ,[object Object]

Full-Scale manufacturing (final products and components manufacturing abroad)

R & D operations,[object Object]

Emergence of supportive institutions

Openness of economic policies among large number of countries

Increase in competition,[object Object]

Benefits to the home countries,[object Object]

Seriously consider credible complaints and try to eliminate them .

Mnc

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