Multinational Companies are the giant companies having their origin in one country and running their operations in more than one country. The Indian economy is one of the fastest growing economies in the world which offers a huge market to the multinational companies.
A multinational corporation can be termed as an organization that manages production and delivers its services in more than one country.
A company can only be called as an MNC if it has subsidiaries in foreign lands, whose assets and revenue are meant for global operations, and its stakeholders are from different countries. Such enterprises maintain, create employment, create wealth and improve technology in countries. These either can be a horizontally integrated, diversified or vertically integrated multinational corporation which may engage in a variety of different businesses.
The history of MNC’s concept can be dated back to the early 20th century. The first MNC in India was the East India Company.
There are lots of advantages that the host countries of the MNCs have such as an increase in investment level, greater availability of products for local customers, transfer of technology, capital, and entrepreneurship, increase in exports & decrease in imports, etc.
Plus having MNCs subsidiaries in the home country has its benefits too, such as the acquisition of raw materials from abroad, adoption of technological expertise from the global markets, Exports of components and finished goods, inflows of income from overseas profit, management contracts, royalties, etc.
Due to the presence of high demand and potential many multinational companies are coming to India to expand their business. Here is the list of Top 10 Multinational Companies in India., that you must have a look at!