Recent trends in multinational corporations in india
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Recent trends in multinational corporations in india :
Recently there has been a change in the attitude towards the multinationals. These are not subject to severe criticism as they were in the past. Even communist countries have developed some favourable attitude to them.
Paul Streeten points out that there are five recent trends that point out the changes:
1. Shift in Bargaining Power:
There has been a shift in bargaining power between multinational and the host countries. There is some evidence that it has become the policy of multinational companies to shift from equity investment ownership of capital and managerial control of overseas facilities to the sale of technology, management services and marketing as a means of earning returns on corporate assets, at least in those countries that have policies against inflows of packaged technology.
2. Dealings with a Greater Number of Foreign Companies:
Not only do the host countries deal with a greater variety of foreign companies, comparing them and weighing them against one another, but the large MNCs are being replaced by smaller and more flexible firms.
3. Competition among the MNCs:
Many more nations are now competing with US multinationals in setting up foreign activities. Japanese and European firms figure prominently among the new MNCs.
4. Establishment of MNCs by the Developing Countries:
In addition to the companies from the organisation of Petroleum Exporting Countries (OPEC) and firms established in tax haven countries, the leading countries where MNCs are being established are Argentina, Brazil, Colombia, Hong-Kong, India, Korea, Paris, Philippines, Singapore and Taiwan.
5. Fifthly, some multinationals from the developed countries have accommodated themselves to the needs of the developing countries.
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