explain the role of multi national corporations in india
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Following are the roles of MNCs in india :-
(i) Availability of capital and foreign investment : The Multinational Corporations or the MNCs help to solve the problem of capital and foreign investment of the underdevelopment and the developing countries . Most of the underdeveloped countries suffer from lack of capital . Consequently, their rate of economic growth is low. MNCs set up factories, and offices for the production in these developing and the underdeveloping countries, and make huge investments . The money that is spent to buy assets such as land , buildings, machines and other equipment, is called investment.
(ii) Availability of foreign exchange : MNCs can be helpful in solving the problem of foreign exchange of the underdeveloped and the developing countries. In 90s, India faced a huge shortage of foreign exchange but, with the entry of the MNCs, today it has surplus foreign exchange reserves .
(iii) Foreign trade and integration of markets : the MNCs help in the integeration of world markets . With the entry of MNCs even the small countries have opened up their domestic markets for other countries . The MNCs increase the foreign trade.
(iv) Helpful in the growth of local producers: Foreign trade by the MNCs create an opportunity for the local producers to reach beyond the domestic markets , i.e , markets of their own countries .
(v) By spreading production activities : MNCs spread their production activities in different parts of the world . For example they design their products in United States or Japan , then manufacture it in China where cheap labour is available and the customer care is carried out through call centres located in India as India provides cheap skilled as well as unskilled workers .
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(i) Availability of capital and foreign investment : The Multinational Corporations or the MNCs help to solve the problem of capital and foreign investment of the underdevelopment and the developing countries . Most of the underdeveloped countries suffer from lack of capital . Consequently, their rate of economic growth is low. MNCs set up factories, and offices for the production in these developing and the underdeveloping countries, and make huge investments . The money that is spent to buy assets such as land , buildings, machines and other equipment, is called investment.
(ii) Availability of foreign exchange : MNCs can be helpful in solving the problem of foreign exchange of the underdeveloped and the developing countries. In 90s, India faced a huge shortage of foreign exchange but, with the entry of the MNCs, today it has surplus foreign exchange reserves .
(iii) Foreign trade and integration of markets : the MNCs help in the integeration of world markets . With the entry of MNCs even the small countries have opened up their domestic markets for other countries . The MNCs increase the foreign trade.
(iv) Helpful in the growth of local producers: Foreign trade by the MNCs create an opportunity for the local producers to reach beyond the domestic markets , i.e , markets of their own countries .
(v) By spreading production activities : MNCs spread their production activities in different parts of the world . For example they design their products in United States or Japan , then manufacture it in China where cheap labour is available and the customer care is carried out through call centres located in India as India provides cheap skilled as well as unskilled workers .
Hope this is helpful for you .✌️✌️
please mark as brainliest
thanks ✌️ ✌️✌️
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