Impact of MNCs on Haryana's Economic Landscape
Economic liberalization has transformed Haryana's business environment, attracting numerous MNCs for investment. Explore the evolution, features, and market advantages MNCs bring to the region.
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Presentation Transcript
SUBJECT SUBJECT : BUSINESS ENVIRONMENT : BUSINESS ENVIRONMENT OF Submitted By :Ritika jatana CLASS : B.COM 1 TOPIC OF HARYANA HARYANA Submitted By :Ritika jatana : B.COM 1ST TOPIC : GROWTH OF MNCs IN CLASS STYEAR [ 2 SEM ] : GROWTH OF MNCs IN YEAR [ 2 SEM ] HARYANA HARYANA
Economic liberalization that swept across the world has very significantly changed the environment for foreign investment in Haryana. It has attracted number of MNCs in Haryana for investment. Economic liberalization that swept across the world has very significantly changed the environment for foreign investment in Haryana. It has attracted number of MNCs in Haryana for investment. History of multi national corporations is very old. The East India company, The Royal Africa Company, And mercantilist age. History of multi national corporations is very old. The East India company, The Royal Africa Company, And Hindson mercantilist age. Hindson Bay Company are some of the examples of MNCs in the Bay Company are some of the examples of MNCs in the Multinational Corporations (MNCs) are giant industrial organisations with their headquarter located in one country, extending their industrial and marketing operations in several other countries through a networking of their branches. MNCs are also known by other names, like Transnational corporations, Global Corporations and International Corporations etc. SOME FEATURES OF MNCs : International operations Create maximum operation Advanced technology Profit motive Multinational management Multinational Corporations (MNCs) are giant industrial organisations with their headquarter located in one country, extending their industrial and marketing operations in several other countries through a networking of their branches. MNCs are also known by other names, like Transnational corporations, Global Corporations and International Corporations etc. SOME FEATURES OF MNCs : International operations Create maximum operation Advanced technology Profit motive Multinational management
INTERNATIONAL IMAGE only when it has a good image. Due to the international image of MNCs, their products are being sold all over the world. INTERNATIONAL IMAGE : Generally, the product of a company is solid in the market only when it has a good image. Due to the international image of MNCs, their products are being sold all over the world. Generally, the product of a company is solid in the market EXPANSION OF MARKET TERRITORY countries resulting in rising GDPs and per capita incomes contributed to the growing standards of living. EXPANSION OF MARKET TERRITORY : Rapid economic growth in a number of countries resulting in rising GDPs and per capita incomes contributed to the growing standards of living. Rapid economic growth in a number of MARKET SUPERIORITIES over the domestic companies. MARKET SUPERIORITIES : A number of market superiorities can be observed in MNCs over the domestic companies. A number of market superiorities can be observed in MNCs TECHNOLOGY SUPERIORITIES high and sustained spend on research and development. TECHNOLOGY SUPERIORITIES : MNCs are technologically prosperous on account of high and sustained spend on research and development. MNCs are technologically prosperous on account of PRODUCT INNOVATION MNCs to develop new products and superior design of their products. PRODUCT INNOVATION : Advanced research and development departments enables MNCs to develop new products and superior design of their products. Advanced research and development departments enables
GLOBALISATIONOF THE ECONOMY computerised technology and other resources of world class. GLOBALISATIONOF THE ECONOMY : The MNCs provides managerial skill, capital, computerised technology and other resources of world class. : The MNCs provides managerial skill, capital, MARKETING OPPORTUNITY different countries. They have the necessary skill and expertise to sell their products at international level. MARKETING OPPORTUNITY : Multinational company have big market available in different countries. They have the necessary skill and expertise to sell their products at international level. : Multinational company have big market available in INCREASE IN EMPLOYMENT skilled as well unskilled employees to operate its activities. INCREASE IN EMPLOYMENT : A multinational company requires a large number of skilled as well unskilled employees to operate its activities. : A multinational company requires a large number of RESEARCH AND DEVELOPMENT : companies in the field of research enable the host country to establish efficient research and development system. RESEARCH AND DEVELOPMENT : The resources and experience of multinational companies in the field of research enable the host country to establish efficient research and development system. The resources and experience of multinational EFFICIENT MANAGEMENT : on its management system. EFFICIENT MANAGEMENT : The success or failure of an organisation totally depends on its management system. The success or failure of an organisation totally depends
OVERFLOW OF LARGE SUM OF MONEY : country in terms of payments of dividends, profile, royalties, technical fees and interest to the foreign investors. HEAVY DAMAGE TO THE ECONOMY : MNCs inflict heavy damage to the economy of the host country through : Suppression of domestic entrepreneurship. Extension of oligopolistic practices. POLITICAL INTERFERANCE : There is a growing tendency of direct and indirect interference of the MNCs in the internal political and other affairs of the country. FAULTY TECHNOLOGY TRANSFER : Another harmful effect of MNCs is the faulty transfer of technology which leads to transfer of inappropriate technology. UNFAIR FOR CONSUMERS : MNCs also uses unfair trade practices. For instance, to save the corporate tax, they over invoice the imports and under invoice the exports. OVERFLOW OF LARGE SUM OF MONEY : Every year, a large sum of money flows out of the country in terms of payments of dividends, profile, royalties, technical fees and interest to the foreign investors. Every year, a large sum of money flows out of the HEAVY DAMAGE TO THE ECONOMY host country through : Suppression of domestic entrepreneurship. Extension of oligopolistic practices. : MNCs inflict heavy damage to the economy of the POLITICAL INTERFERANCE of the MNCs in the internal political and other affairs of the country. : There is a growing tendency of direct and indirect interference FAULTY TECHNOLOGY TRANSFER technology which leads to transfer of inappropriate technology. : Another harmful effect of MNCs is the faulty transfer of UNFAIR FOR CONSUMERS corporate tax, they over invoice the imports and under invoice the exports. : MNCs also uses unfair trade practices. For instance, to save the
MAJOR MNCs etc. MAJOR MNCs : Major MNCs in operation in Haryana are Philips, Pepsi, Coke, Ponds, etc. : Major MNCs in operation in Haryana are Philips, Pepsi, Coke, Ponds, TREADS IN GROWTH OF MNCs down over the years but their assets have increased considerably. TREADS IN GROWTH OF MNCs : Through the number of MNCs in Haryana has gone down over the years but their assets have increased considerably. : Through the number of MNCs in Haryana has gone ORIGIN OF MNCs : from USA, there are 19 branches of MNCs. ORIGIN OF MNCs : The maximum number of MNCs in Haryana are from U.K. i.e. 86 from USA, there are 19 branches of MNCs. The maximum number of MNCs in Haryana are from U.K. i.e. 86 SOURCES OF CAPITAL : Haryana only. The capital outflow from the country is very little. SOURCES OF CAPITAL : Most of the MNCs mobilize their resources from within Haryana only. The capital outflow from the country is very little. Most of the MNCs mobilize their resources from within PROFITABLITIY has been higher both in the private and the public sector companies. PROFITABLITIY : Compared to our Haryana companies, the rate of profitability of MNCs has been higher both in the private and the public sector companies. : Compared to our Haryana companies, the rate of profitability of MNCs FOREIGN EXCHANGE DRAIN remit to their parent countries, huge amounts by way of royalty for technical services. FOREIGN EXCHANGE DRAIN : The rate of profitability of MNCs is very high . They remit to their parent countries, huge amounts by way of royalty for technical services. : The rate of profitability of MNCs is very high . They
