MNCs and Impact of Globalization - Class XII

The Coca-Cola Company, which is headquartered in Atlanta, Georgia, is an American multinational beverage corporation, and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.

Honda Motor Co., Ltd. is a Japanese public multinational conglomerate corporation primarily known as a manufacturer of automobiles, aircraft, motorcycles, and power equipment.

Nokia Corporation, stylised as NOKIA, is a Finnish multinational communications and information technology company, founded in 1865. Nokia is headquartered in Espoo, Uusimaa, in the greater Helsinki metropolitan area.

Developing economies often rely on imports of essential raw materials and industrial inputs like copper, zinc, and fertilizers to support infrastructure and agricultural growth.

It should be noted that under the cumbersome provisions of GATT (General Agreement for Tariff and Trade) India could not open up its agriculture sector for international trade. India’s exports were mainly confined to
traditional items like spices, tea, coffee etc., which were having very low demand
elasticity in the international market.

 Because of the cheaper prices and new designs, Chinese toys become more popular in the Indian markets.

India imports 35% of its petroleum requirements from foreign. Petroleum comes from Iran, Kuwait, Iraq and Saudi Arabia. In 2004-05, petroleum worth Rs. 134095 crore were imported.

Ford Motors re-entered Indian markets in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. 

Prior to Independence, India's foreign trade was mainly confined to Britain. But now the table have turned. At present, India has maximum imports from and exports to European Union, Role of Japan, U.S.S.R., USA and Organisation of Petroleum Exporting Countries (OPEC) in  India's foreign trade has increased substantially.

Positive impact of globalisation:-

• Greater competition among producers resulting from Globalisation is a great advantage to consumers as there is greater choice before them.
• Due to globalisation many MNCs have increased their investments in India.
• Local companies supplying raw materials, to these industries have prospered.

India's largest trading partner in the world is China as India exports approximately 16.34 % of its total exports to China and import approximately 68.08 % of its total imports from China. Therefore the total trade that takes place between China and India comprises of approximately 84.4 % of India's overall trade which in highest with China. 

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. As MNC operates in more than two or more countries it encourages employment opportunities in different countries. Hence, it is not the disadvantage of MNC.

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, MNCs can be defined as a firm which owns companies in more than one country.

Internalisation  is the process of increasing the involvement of enterprises in international markets. Hence, for multinatinoal activity, internalisation means exploiting a well-established global brand image to dominate overseas markets.

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Its main advantage is it increases the transfer of technology between the nations.

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, a MNC is defined by an organisation carrying out production in more than one country.

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, the characteristic feature of a MNE include it owns its subsidiaries in other countries as well as it may operate in another country.

MNC refers to those organisations who have their headquarters in the home country and subsidiaries in two or more country. When a MNC invests in other countries it directly increases employment in the countries where investment is done. Hence, it can be a disadvantage to the home country as employment decreases..

MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. I t provides various benefits to the home countries:

MNC refers to those organisations who have their headquarters in the home country and subsidiaries in two or more country. Some MNCs have their economy as large as the economy of many developing countries. Walmart made a total profit of 16 billion dollars and that is as large as economy of any developing country.

MNC refers to an organisation which has its headquarter in home country and operates in two or more countries through its subsidiaries being set up there. Hence, a MNC is defined by an organisation carrying out production in more than one country.

A MNC is an organisation which has its main headquarters in the home country but has its subsidiaries in two or more countries. Many MNCs are located mostly in America. Hence, home location for most of the world's MNC is at america.

MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. The advantage of MNC are:

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. All the pairs mentioned of the MNC and their base countries are absolutely correct.

MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. The advantage of MNC are:

A MNC is an organisation which has its main headquarters in the home country but has its subsidiaries in two or more countries. E.g. McDonalds have its main headquarters in USA but have its branches in many countries of the world.

A multinational corporation is an organisation which has its main headquarter in home country and operates with its subsidiaries in two or more countries. Microsoft has its main headquarters in Washington but has its subsidiaries all over the world.

A multinational corporation is an organisation which has its main headquarter in home country and operates with its subsidiaries in two or more countries. Coca-Cola has its main branch in Georgia but has many subsidiaries spread all over the world.

The Balance of Payment (BoP) is a systematic record of all economic transactions between the residents of a country and the rest of the world, maintained using double-entry bookkeeping.

Option II and III are correct; option C is the correct answer.

Reason:- Improvement in the transport sector facilitates globalization, it is not an outcome of globalization. 

Whereas Liberalization of foreign trade and Favorable rules under the developing countries category helped India to improve trade in the world. 

Globalisation encompasses the integration of domestic economies with the world economy, reducing isolation, and fostering international economic cooperation.

For a large number of small producers and workers globalisation has posed major challenges. MNC's sell their products at cheaper prices in other countries which affects Indian producers because people would prefer buying the same thing at a cheaper price which is sold by MNC's.

 Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. 

India is currently the world’s second-largest telecommunications market and has registered strong growth in the past decade and half. The Indian mobile economy is growing rapidly and is expected to contribute substantially to India’s Gross Domestic Product (GDP).

If we look at the past thirty years or so, we find that MNC's have been a major force in the globalisation process connecting distant regions of the world.

Due to new communication technologies, one of the biggest trends is to move call centres offshore to the global south to countries such as India where labour is cheap and the employees speak English. 80% of call centres in India cater to the international market. This industry in India is the result of globalisation since there were no domestic call centres in India prior to the international call centres. It is estimated that the Indian call centre industry now employs 1.2 million people for both inbound and outbound customer service.

Agriculture is the bedrock of Indian economy where farm rather than factories have been the mainstay of masses. In addition, it accounts for 10 per cent of the country’s exports lending a helping hand in earning valuable foreign exchange. The impressive achievements of this sector have been the joint efforts of the farming community and agricultural scientists, marketing professionals and the public and cooperative sectors. 

MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. The various functions of MNC are:

A multinational corporation is an organisation which has its main headquarter in home country and operates with its subsidiaries in two or more countries. The main advantages of MNC to home countries are as follows: