Multi-National Companies MNCs


 
 
Concept Explanation
 

Multi-National Companies MNCs

Globalisation is the integration between countries through foreign trade and foreign investment by Multinational Companies (MNCs). In recent years, markets in India have transformed due to globalisation. Today, there is a wide range of choice in good which are available in Indian markets. Now the latest models of digital cameras mobile phones, television, cars, etc made by the leading manufactures of the world at’ within our reach. The advances in communication, transportation and infrastructure have made possible this transformation of markets.

Production across Countries: The early phase of globalisation involved export of raw materials from colonial countries such as India and import of finished products from industrially developed European countries and the USA. But from the middle of the 20th century, thing began to change. Some companies became Multinational Corporations (MNCs) as they spread their economic activities to various parts of the world.

Multinational Corporations (MNCs): An MNC is a company that owns or controls production in more than one country MNCs set-up offices and factories for production in regions where they can get cheap labour and other resources, to minimize cost and maximize profit they sell their finished products globally and also produce the goods and services globally. The production process was divided into small parts and spread out across the globe.

 
 
 


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