Mnc and Their Roles
1.What is a MNC? Discuss the impact of Foreign Direct Investments in at least two sectors of the Indian economy with examples.
The essential nature of the Multinational Enterprise lies in the fact that its managerial headquarters are located in one country (referred to for convenience as the ‘home country’). While the enterprise carries out operations in a number of other countries as well (‘host countries’). It means a corporation that controls production facilities in more than one country such facilities having been acquired through the process of foreign direct investment
Multinational activity falls into the category of foreign direct investment (FDI). It entails buying or selling firms abroad, or the establishment of entirely new production facilities abroad. Thus, when we say the German electronics manufacturer Siemens buys an American electronics firm or sets up a new electronics plant in the USA it is engaging in FDI.
Impact of FDI in India’s Retail sector
1) Employment opportunity - If many companies comes to India for their business they definitely need labor to perform their task. So they can hire our people in a large way so this give the advantage who still waiting for the job opportunity.
2) Enhance lifestyle - FDI will help to Indian people in order to enhance their lifestyle. There are many renown companies if they come to India it will make a huge impact on the people of India.
3) GDP growth - It will also help in increasing the GDP growth of the India.
4) Quality products - The major advantage of FDI is these companies will sell their standard or quality in cheaper price compare to Indian price. So people of India will definitely go for those products where they can afford to buy.5. Farmers can directly access the market policies that will help him to selling their product.
6. By giving less cost for the products, the small scale industries will affected. IT means it will fully abolished by the way of those offers.
7. If we
The essential nature of the Multinational Enterprise lies in the fact that its managerial headquarters are located in one country (referred to for convenience as the ‘home country’). While the enterprise carries out operations in a number of other countries as well (‘host countries’). It means a corporation that controls production facilities in more than one country such facilities having been acquired through the process of foreign direct investment
Multinational activity falls into the category of foreign direct investment (FDI). It entails buying or selling firms abroad, or the establishment of entirely new production facilities abroad. Thus, when we say the German electronics manufacturer Siemens buys an American electronics firm or sets up a new electronics plant in the USA it is engaging in FDI.
Impact of FDI in India’s Retail sector
1) Employment opportunity - If many companies comes to India for their business they definitely need labor to perform their task. So they can hire our people in a large way so this give the advantage who still waiting for the job opportunity.
2) Enhance lifestyle - FDI will help to Indian people in order to enhance their lifestyle. There are many renown companies if they come to India it will make a huge impact on the people of India.
3) GDP growth - It will also help in increasing the GDP growth of the India.
4) Quality products - The major advantage of FDI is these companies will sell their standard or quality in cheaper price compare to Indian price. So people of India will definitely go for those products where they can afford to buy.5. Farmers can directly access the market policies that will help him to selling their product.
6. By giving less cost for the products, the small scale industries will affected. IT means it will fully abolished by the way of those offers.
7. If we