Accountancy, asked by vishalsgaikwad, 1 year ago

Explain the role of MNC in economic

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Answered by rajesh205
5
Role of Multinational Corporations in the Indian Economy

Promotion Foreign Investment: In the recent years, external assistance to developing countries has been declining. ...Non-Debt Creating Capital inflows: ...Technology Transfer: ...Promotion of Exports: ...Investment in Infrastructure:

Answered by arjun7774
2
MNCs have contributed significantly to the development of world economy at large. They have also served as an engine of growth in many host countries. Their importance in a developing country may be traced as follows:

1. MNCs help a developing host country by increasing investment, income and employment in its economy.

2. They contribute to the rapid process of development of the country through transfer of technology, finance and Tnodern management.

3. MNCs promote professionalisation management in the companies of the host countries.

4. MNCs help in promoting exports of the host country.

5. MNCs by producing certain required goods in the host country help in reducing its dependence on imports.

6. MNCs due to their wide network of productive activity equalise the cost of production in the global market.

7. Entry of MNCs in the host country makes its market more competitive and break the domestic monopolies.

8. MNCs accelerate the growth process in the host country through rapid industrialisation and allied activities.





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