Question

what is MNC explan it

Answer 1

MNC ( Multi-National Company ) ---> Companies which operate in different countries are known as Multinational companies . These companies carry on their business activities in different countries across the globe.

Multinational corporations are also known as ' Global enterprises '. Some examples of MNC's are :-

✦ Mc Donald's
✦ Sony
✦ Adidas
✦ Coca Cola
✦ Hindustan Unilever Ltd.etc.


► Characteristics of MNC's :

A multinational operates through network of branches spread across various host countries. it has production , marketing and other facilities in several countries. These enterprises use sophisticated technology in their methods of production. Innovative products manufactured by multinational corporations help in increasing the standard of living of people living in host countries.

► Benefits of MNC's :

Multinationals have positive as well as negative impacts on the economy of host country. The benefits are as follows :-

◆ MNC's provides employment opportunities to the host countries and helps in increasing their income levels.

◆ MNC's helps the people in host countries to improve their standard of living. It provides them with innovative and technologically superior products which enhances their quality of life.

◆ MNC's increases competition, they compel domestic companies to improve their efficiencies or withdraw from the market.

◆ MNC's acts as vehicle for transfer of the advanced technology and improved skills which helps in improving the quality of products manufactured.

► Criticisms of MNC'S :

Through, MNC's acts as a dynamic force in development of economy in host country, they also have certain negative impacts on them :

◆ MNC's cause fast depletion of non- renewable natural resources in the host countries.

◆ MNC's invest only in profitable areas and do little for underdeveloped sectors & backward areas. hence, it fails to solve problems like :- poverty, illiteracy, and unemployment.

◆ MNC's kills domestic enterprises which eliminates competition.

◆ MNC's bring foreign culture which affects lifetyle, Habits of food, work culture of people living in host countries. eg ;- Fast foods, have become popular among people of India.

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Answer 2

HEY MATE HERE IS YOUR ANSWER ;-

MNC:-

A multinational corporation (MNC) has facilities and other assets in at least one country other than its homecountry. Such companies have offices and/or factories in different countries and usually have a centralized head office where they coordinate global management.

ROLE OF MNC :-

Role of Multinational Corporations.Multinational corporations (MNCs) are huge industrial organizations having a wide network of branches and subsidiaries spread over a number of countries. ... Their operations extend beyond their own countries, and cover not only the advanced countries but also the LDCs.

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