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What are the different ways of financing foreign trade?
The different ways of financing the foreign trade include cash in advance, the commercial letter of credit and working capital financing.
What the objective of mnc?
OBJECTIVES1. MNCs have managerial headquarters in home countries, while they carry out operations in a number of other (host) countries.2. A large part of capital assets of the parent company is owned by the citisens of the company's home country.3. The absolute majority of the members of the Board of Directors are citisens of the home country.4. Decisions on new investment and the local objectives are taken by the parent company.5. MNCs are predominantly large-sized and exercise a great degree of economic dominance.6. MNCs control production activity with large foreign direct investment in more than one developed and developing countries.7. MNCs are oligopolistic in character. It is sustained by modern technologies, management skill, product differentiation and enormous advertising.8. MNCs are not just participants in export trade without foreign investments.
MNC are a mixed blessing to the developing countries Comment on this statement?
Multinational Corporations are indeed a mixed blessing for the development countries. This is because of the fact that although MNCs has there advantages but, along with them it also has its own disadvantages.The following points highlight the advantages of MNCs to the developing countries.i. Better employment opportunities- MNCs help to create better and high number of employment opportunities in the developing countries. With increased market operations, they help in boosting the employment in the nation.ii. Employing new technologies- As MNCs enter the markets of the developing countries, it brings along the new technologies and innovations with them. This adds to the development of the domestic industries.iii. Improvement in infrastructure- Along with the use of new technology, the overall level of infrastructure of the country also rises. This also adds to the benefits to the developing countries.iv. Wide variety of goods available- As MNCs enter the domestic market, it brings along a flood of variety of the goods and services that are provided in foreign markets. This provides the developing nations a variety of goods to choose from.The following points highlight the disadvantages of MNCs.i. Exploitation of cheap labour- MNCs often lead to the exploitation of the cheap labour in lieu of low wage rates.ii. Increasing domestic competition- By influencing the market, MNCs increase the level of competition among the domestic industries and thereby damages the domestic market.iii. Outflow of funds to protect MNCs- The government in order to protect the MNCs for foreign investment, directs huge amount of funds to them. Also, large amount of funds in terms of profits and dividends, etc also flows out to the foreign countries.iv. Environment degradation- As MNCs use the natural resources present in the developing countries, it leads to a depletion in the domestic resources. All this may result in environment degradation and displacement issues.Thus, analysing the above pros and cons of MNCs, we can say that they are a mixed blessing for the developing nations.
Advantages of multinational companies for India?
With arrival of mncs in India, the basic infrastructure will have a sea change to which the whole country will be immensely benefitted. The customers will get quality products even at cheaper price. Thought the main objective of the mncs is profit maximization, their presence will be greeted with applause. With bue back arrangement, they can also help to bring in foreign exchange for the country.
Basic objectives of mnc's?
objectives of mncs
What are the different ways of financing foreign trade?
The different ways of financing the foreign trade include cash in advance, the commercial letter of credit and working capital financing.
Is chennai worth calling a metropolitan city?
With so many MNCs and foreign nationals working it would be a cosmopolitan city
Which is not a foreign affairs power given to congress?
deficit financing is not a foreign affairs power given to congress.
What is the difference between foreign trade and foreign investment?
when MNCs invest their money to buy assets such as land and machines, it is known as foreign investment. It is made with the hope that the value of these assets will increase in future whereas foreign trade is the trade which takes place between two or more countries through MNCs. Foriegn Trade includes buying and selling of good under an aggreement while Foriegn Investment only deals with investments in shares of properties on a foriegn land
What type of financing should you consider first as it is the preferred Government method of contract financing?
Performance Based Payments
What is the role of multinational companies in your Indian economy?
There is no distinction between an MNCs & a domestic company in India policy regarding MNCs is the same as for Foreign Private Capital in indie. Large & dominant MNCs along with Indian Companies are covered under MRTP Act. MNCs are specifically covered under Foreign Exchange Management Act (FEMA).Now, we study the operation of MNCs in India:1.) Profit Maximisation.2.) International Network of marketing.3.) Diversification Policy.4.) Concentration in Consumer goods.5.) Location of central control offices.6.) Techniques to achieve Public Acceptability.7.) Existence of Modern & Sophisticated Technology.8.) Business but not social Justice.9.) MNCs & Process of planned Economic Development in India.10.) Cultural Explosion.Read more: What_is_the_role_of_Multinational_companies_in_India
What the objective of mnc?
OBJECTIVES1. MNCs have managerial headquarters in home countries, while they carry out operations in a number of other (host) countries.2. A large part of capital assets of the parent company is owned by the citisens of the company's home country.3. The absolute majority of the members of the Board of Directors are citisens of the home country.4. Decisions on new investment and the local objectives are taken by the parent company.5. MNCs are predominantly large-sized and exercise a great degree of economic dominance.6. MNCs control production activity with large foreign direct investment in more than one developed and developing countries.7. MNCs are oligopolistic in character. It is sustained by modern technologies, management skill, product differentiation and enormous advertising.8. MNCs are not just participants in export trade without foreign investments.
Future benefits of MNC in India?
Multinational corporations, or MNC, benefit India by bringing in large amounts of foreign capital for investments. MNCs also help raise the level of expertise in a country by bringing in experts from other areas. Beyond that, MNCs can also create competition locally that will benefit innovation and consumers.
MNC are a mixed blessing to the developing countries Comment on this statement?
Multinational Corporations are indeed a mixed blessing for the development countries. This is because of the fact that although MNCs has there advantages but, along with them it also has its own disadvantages.The following points highlight the advantages of MNCs to the developing countries.i. Better employment opportunities- MNCs help to create better and high number of employment opportunities in the developing countries. With increased market operations, they help in boosting the employment in the nation.ii. Employing new technologies- As MNCs enter the markets of the developing countries, it brings along the new technologies and innovations with them. This adds to the development of the domestic industries.iii. Improvement in infrastructure- Along with the use of new technology, the overall level of infrastructure of the country also rises. This also adds to the benefits to the developing countries.iv. Wide variety of goods available- As MNCs enter the domestic market, it brings along a flood of variety of the goods and services that are provided in foreign markets. This provides the developing nations a variety of goods to choose from.The following points highlight the disadvantages of MNCs.i. Exploitation of cheap labour- MNCs often lead to the exploitation of the cheap labour in lieu of low wage rates.ii. Increasing domestic competition- By influencing the market, MNCs increase the level of competition among the domestic industries and thereby damages the domestic market.iii. Outflow of funds to protect MNCs- The government in order to protect the MNCs for foreign investment, directs huge amount of funds to them. Also, large amount of funds in terms of profits and dividends, etc also flows out to the foreign countries.iv. Environment degradation- As MNCs use the natural resources present in the developing countries, it leads to a depletion in the domestic resources. All this may result in environment degradation and displacement issues.Thus, analysing the above pros and cons of MNCs, we can say that they are a mixed blessing for the developing nations.
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Which four benefits are available to host countries from MNC?
Host countries can benefit from multinational corporations (MNCs) in several ways. Firstly, they can experience economic growth through increased foreign direct investment, which creates jobs and boosts local industries. Secondly, MNCs often bring advanced technology and expertise, enhancing local skills and productivity. Additionally, host countries can benefit from improved infrastructure and services, as MNCs may invest in local facilities to support their operations. Lastly, MNCs can contribute to government revenues through taxes, which can be used for public services and development projects.
Which are the MNCs of Indian origin Which are the Indian MNCs operating abroad?
ITC Hotels Kingfisher Tata Steel Jindal CISCO
