ECONOMICS PROJECT

A PROJECT REPORT

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQIREMENTS FOR THE

AWARD OF THE M.COM DEGREE OF

MASTER IN COMMERCE

(MANAGEMENT)

SUBMITTED TO UNIVERSITY OF MUMBAI,

LALA LAJPATRAI COLLEGE, MAHALAXMI, MUMBAI

SUBMITTED BY

SAMIR PARIKH ROLL NO. 639

SUPERVISED BY

Prof. Janki Annanraj

February 2014
 ECONOMICS
A PROJECT REPORT

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQIREMENTS FOR THE

AWARD OF THE M.COM DEGREE OF

MASTER IN COMMERCE

(MANAGEMENT)

SUBMITTED TO UNIVERSITY OF MUMBAI,

LALA LAJPATRAI COLLEGE, MAHALAXMI, MUMBAI

SUBMITTED BY

SAMIR PARIKH ROLL NO. 639

SUPERVISED BY

Prof. Janki Annanraj

FEBUARY 2014

3
 AKNOWLEDGEMENT

I would like to place on record my deep sense of gratitude to Prof. Janki Annanraj, for his
generous guidance, help and useful suggestions.

I express my sincere gratitude to Prof. Janki Annanraj, for his stimulating guidance,
continuous encouragement and supervision throughout the course of present work.

I also wish to extend my thanks to Prof. Janki Annanraj and other colleagues for attending
my seminars and for their insightful comments and constructive suggestions to improve the
quality of this project work.

I am extremely thankful to the Principal Neelam Arora, for providing me with infrastructural
facilities to work in, without which this work would not have been possible.

SIGNATURE OF STUDENT

4
 CERTIFICATE

I hereby certify that the work which is being presented in the M.Com Internal Project Report
entitled “Multi-National Corporations.”, in partial fulfillment of the requirements for the
award of the Master of Commerce in Management and submitted to the Lala Lajpatrai
College of Commerce and Economics, Mahalaxmi, Mumbai – 400034 is an authentic record
of my own work carried out under the supervision of Dr. Suryakant Lasune. The matter
presented in this Project Report has not been submitted by me for the award of any other
degree elsewhere.

SIGNATURE OF STUDENT:

SIGNATURE OF SUPERVISOR:

INTERNAL EXAMINER:

EXTERNAL EXAMINER:

COLLEGE STAMP:
PRINCIPAL

5
 TABLE OF CONTENTS

SR No. Title Page No.

1 INTRODUCTION 8

2 MEANING AND DEFINATION 9

3 CHARACTERISTICS 10
4 FUNCTIONS 12
5 BENEFITS 14
6 PROBLEMS 15
7 GROWTH OF MNC 18
8 CHALLENGES FACED BY MNC 19
9 ROLE OF MNC IN INDIA 20
10 CONCLUSION 26

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1. INTRODUCTION
Multinational Corporations (MNCs) are giant industrial organizations with their Headquarters
Located in one country, extending heir industrial and marketing operations in several
countries through a network of their branches or their Majority Owned Foreign Affiliates
(MOFAs). MNCs are also known by other names, like/, transnational corporations, global
corporations and international corporations, etc. A multinational corporation (MNC) or
transnational corporation (TNC), also called multinational enterprise (MNE), is a corporation
or enterprise that manages production or delivers services in more than one country. It can
also be referred to as an international corporation.
The first modern MNC is generally thought to be the Dutch East India Company, established
in 1602. The key element of transnational corporations was present even back then: the Dutch
East India Company was operating in a different country than the one where it had its
headquarters. Nowadays many corporations have offices, branches or manufacturing plants in
different countries than where their original and main headquarter is located. This is the very
definition of a transnational corporation. Having multiple operation points that all respond to
one headquarter. This often results in very powerful corporations that have budgets that
exceed some national GDPs Multinational corporations can have a powerful influence in
local economies as well as the world economy play an important role in international
relationship globalization presence of such powerful players in the world economy is reason
for much controversy.

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2.MEANING AND DEFINATION OF MNC:
Any business corporation which has holdings, management, production and marketing
extended over several countries , owns huge resources and extensive potentiality , and
encourages a collective transfer of resources among various countries with a view of
increasing profitability under a centralized ownership is called a “ multinational corporation”.
Jacques Maisonrouge, president of IBM world trade corporations defines an MNC as a
company that meets five criteria:
1) It operates in many countries at different levels of economic developments.
2) Nationals manage its local subsidiaries.
3) It maintains complete industrial organizations, including R and d and manufacturing
facilities in several countries.
4) It has a multinational central management.
5) It has multinational stock ownership.
James C. Baker also defines MNC’s as a company:
1) Which has direct investment base in several countries.
2) Which generally derives from 20% to 50% or more its net profits from foreign operations.
3) Whose management makes policy decisions based on the alternatives available anywhere
in the world.
A significant share of the world’s industrial investment, production, employment and trade
are accounted for by these more than 65000 MNC’s with over 8,00,000 affiliate.

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3.Characteristics of multinational corporations (MNCs):
The multinational corporations have certain characteristics which may be discussed below :
(1) Giant Size :
The most important feature of these MNCs is their gigantic size. Their assets and sales run into
billions of dollars and they also make supernormal profits. According to one definition an MNC
is one with a sales turnover of f 100 million. The MNCs are also super powerful organisations. In
1971 out of the top ninety producers of wealth, as many as 29 were MNCs, and the rest, nations.
Besides the operations, most of these multinationals are spread in a vast number of countries. For
instance, in 1973 out of a total of (,000 firms identified nearly 45 per cent had affiliates in more
than 20 countries.
(2) International Operation :
A Fundamental feature of a multinational corporation is that in such a corporation, control
resides in the hands of a single institution. But its interests and operations sprawl across national
boundaries. The Pepsi Cola company of the U.S operates in 114 countries. An MNC operates
through a parent corporation in the home country. It may assume the form or a subsidiary in the
host country. If it is a branch, it acts for the parent corporation without any local capital or
management assistance. If it is a subsidiary, the majority control is still exercised by the foreign
parent company, although it is " incorporated in the host country. The foreign control may range
anywhere between the minimum of 51 per cent to the full, 100 per cent. An MNC thus combines
ownership with control. The branches and subsidiaries of MNCs operate under the unified
control of the parent company.

(3) Oligopolistic Structure :

Through the process of merger and takeover, etc., in course of time an MNC comes to assume
awesome power. This coupled with its giant size makes it oligopolistic in character. So it enjoys
a huge amount of profit. This oligopolistic structure has been the cause of a number of evils of
the multinational corporations.

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(4) Spontaneous Evolution :
One thing to be observed in the case of the MNCs is that they have usually grown in a
spontaneous and unconscious manner. Very often they developed through "Creeping
incrementalism." Many firms become multinationals by accident. Sometimes a firm established a
subsidiary abroad due to wage differentials and better opportunity prevailing in the host country.
(5) Collective Transfer of Resources :
An MNC facilitates multilateral transfer of resources Usually this transfer takes place in the form
of a "package" which includes technical know-how, equipment's and machinery, materials,
finished products, managerial services, and soon, "MNCs are composed of a complex of widely
varied modern technology ranging from production and marketing to management and financing.
B.N. Ganguly has remarked in the case of an MNG "resources are transferred, but not traded in,
according to the traditional norms and practices of international trade."
(6) American dominance :

Another important feature of the world of multinationals is the American dominance. In 1971,
out of the top 25 MNCs, as many as 18 were of U.S. origin. In that year the U.S. held 52 per cent
of the total stock of direct foreign private investment. The U.E. has assumed more of the role of a
foreign investor than the traditional exporter of home products

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4.FUNCTIONAL NATURE OF MNC:
Functional nature of MNCs means the functions of Multinational Organizations which they

follow and succeed .

There may be five different functions of MNCs-
Planning
Organizing
Staffing
Leading and;
Controlling

Planning in MNC
Involves Study of International and External environment to do SWOT analysis.
Setting the objectives.
To compete in world markets, form GSP (Global Strategic Partnership) with the local players.

Organizing in the MNC

To achieve corporate objectives
Can appoint VP for all foreign branches. He will control these branches from Head Office.

A MNC may organize the structure on the basis of production line. E.g; one manager will be

incharge of one product .

Staffing in MNC
Select managers from the home country. These mangers will know the values of the company
clearly
Select mangers from the host country. They will know the culture of the host country.

Select mangers from the third country .

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Leading in MNC
Involves motivating and communicating.
Managers must have effective leadership qualities

Staffing in MNC
Select managers from the home country. These mangers will know the values of the company
clearly
Select mangers from the host country. They will know the culture of the host country.
Select mangers from the third country.
Leading in MNC
Involves motivating and communicating.
Managers must have effective leadership qualities

IMPORTANCE OF MNC’S AND THEIR BENEFITS

TO HOME/HOST COUNTRIES:
Importance of MNC’s
1.Vehicles of technology transfer to developing countries
2.They work to equalize the cost of factors of production around the world.
3.Efficient means of integrating national economies.
4.Contribute to R & D due to enormous resources.
5.Help to increase competition & break down domestic monopolies
.

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5. a)Benefits of MNC’s to home country:
1) Facilitate inflow of foreign exchange: - MNC’s collect funds from the enterprises of other
countries in the form of fees, royalty, and service charges. This money is taken to the country of
their origin. MNC’s make their home countries rich by facilitating inflow of foreign exchange
from other countries.
2) Promote global co-operations: - MNC’s provide co-operation to poor or developing countries
to develop their industries. The countries of their origin participate in such international co-
operation, which is beneficial to all countries- rich and poor.
3) Ensure optimum utilization of resources: -MNC’s ensure optimum utilization of natural and
other resources available in their home countries. This is possible due to their worldwide
business contacts.
4) Promote bilateral trade relations: -MNC’s facilitate bilateral trade relations between their
home countries and the other countries with which they have business relations.

5. b)Benefits of MNC’s to host countries:

1) Raise the rate of investment: - MNC’s raise the rate of investment in the host countries and
thereby bring rapid industrial growth accompanied by massive employment opportunities in
different sectors of the economy.
2) Facilitate transfer of technology: -Multinationals act as agents for the transfer of technology to
developing countries and thereby help such countries to modernize there industries. They remove
technological gaps in developing countries by providing techno-managerial skills.
3) Accelerate industrial growth: - multinationals accelerate industrial growth in host countries
through collaborations, joint ventures and establishment of subsidiaries and branches. They
facilitate economic growth through financial, marketing and technological services. MNC’s are
rightly called “ messengers of progress”.
4) Promote export and reduce imports: - MNC’s help the host countries to reduce the imports and
promote the exports by raising domestic production. Marketing facilities at global level are
provided by MNC’s due to their global business contacts.

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5) Provide services to professionals: - MNC’s provide the services of the skilled professional
managers for managing the activities of the enterprises in which they are involved/interested.
This raises overall managerial efficiency or enterprises connected with multinationals. MNC’s
bring managerial revolution in host countries.
6) Facilitate efficient utilization of resources: - Multinationals facilitate efficient utilization of
resources available in host countries. This leads to economic development.
7) Provide benefits of R and D activities: -Multinationals has enormous resources at their
disposal. Some are utilized for R and D activities. The benefits of R and D activities are passed
on to the enterprises operating in the host countries.
8) Support enterprises in host countries: - MNC’s support to enterprises in the host countries in
order to support their own operations indirectly. This is how MNC’s support enterprises in the

host countries to grow. Even consumers get new goods and services due to the operations of
MNC’s.
9) Break domestic monopolies: - MNC’s raise competition in the host countries and thereby
break domestic monopolies.

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6.PROBLEMS
1) Provide outdated technologies: - MNC’s design the technologies, which can be used in
different countries. They don’t supply technology to poor countries for industrial development
but for profit maximization. The technologies designed for profit maximization and not purely
for meeting the needs of developing countries. The technologies supplied may be costly and may
be outdated and obsolete or may not be suitable for the needs of developing countries.
2) Harm the national interests: - the activities of MNC’s in the host countries may be harmful to
the national interests as MNC’s are solely guided by the profit maximization. They ignore the
interests of host countries. MNC’s even make profits at the cost of developing countries.
3) Charge heavy fees: - MNC’s charge heavy fees and service charges from the enterprises in the
host countries. They repatriate profits of their subsidiaries to their home countries. This leads the
outflow of countries.
4) Develop monopolies: - MNC’s restrict competition and acquire monopoly power in certain
areas in the host countries.
5) Use resources recklessly: -MNC’s use the resources in the host countries in a very reckless
manner, which leads to fast reduction of non-renewable natural resources.
6) Dominate domestic policies: -MNC’s use their money power for political purposes. They take
undue interest in political matters in the host countries. MNC’s are being openly termed as an
extension of the imperialistic forces.
7) Adverse effects on life style/culture in the host countries: - MNC’s create demand for goods
and services in developing countries through advertising and sales promotion techniques. As a
result, people purchase costly/ luxury goods which are not really useful nor within their capacity

to purchase. MNC’s create adverse effects on the cultural background of many developing
countries.
8) Interfere in economic and political systems: - they put indirectly pressures for the formulation
of policies that are favorable to them. They even topple the government in the host countries if
its policies are against the MNC’s and their operations.

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9) Avoid tax liabilities: - transfer pricing enables multinational corporations to avoid taxes by
manipulating prices in the case of intra company transactions.
10) Lead to brain drain in developing countries: - multinationals are now entering in countries
like India in a bigger way. They hire qualified technocrats and managerial experts. These people
work for a few years in India, acquire experience and relocated as experts in Singapore, Korea or
the United States for managing the activities of MNC’s. This leads to brain drain in developing
countries.
MNC’S have helped and also harmed the developing countries. It is a peculiar mixture of virtues
and vices, boons and banes. However no country can afford to avoid MNC’s only because it has
dangers associated with them. It may be concluded that MNC’s constitute a mixed blessing to
developing countries. They are helping as well as harming the developing countries. It is rightly
said “MNC’s are bound to exist and eveloping countries have to learn to live with Them”.

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7.GROWTH OF MNC:
The MNCs share in global investment, production, employment and trade has assumed
considerable proportions.
According to the UN, there are 63,000 MNCs with 6,90,000 affiliates all over the globe with
2,40,000 in China and only 1400 in India. The US was the forerunner in giving births to MNCs.
Today, biggest MNC’s are Japanese. T
He global liberalization wave, paved the path for faster expansion and growth of MNCs. The
value added by the foreign affiliates of MNCs, as a percentage of global GDP grew from 5% in
the 1980s to about 7% by the end of 90s. The MNCs control about a third of world output and
the total sales of their foreign affiliates is almost equal to the GNP of all developing countries.
The value of the annual sales of the largest manufacturing multinational General Motors, was
about $178bn in 1996. The total sales of the 3 largest automobile firms of the world, namely,
General Motors, Ford and Toyota is greater than the value of India’s GDP.
In terms of direct employment, the MNCs accounted for 73mn people worldwide and if indirect
employment is considered, the figure approximates 150mn people. Over 350m people were
employed by the foreign affiliates of MNCs in 1988.
A number of factors have contributed to the phenomenal growth of MNCs. Some of the
important factors are as follows: -
1) Expansion of market territories: -
Rapid economic growth in a number of countries resulting in rising GDPs and per capita
incomes contributed to the growing standards of living. This in turn contributed to the
continuous expansion of market territories. MNCs, both contributed to the expansion of market
territories and also grew in size and spread as a result of expansion of market territories.
2) Market superiorities: -

In many ways, MNCs have an edge over domestic firms, such as: -
a) Availability of reliable and current data,
b) MNCs enjoy market reputation,

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c) MNCs encounters relatively less problems and difficulties in marketing the products,
d) MNCs adopt more effective advertising and sales promotion techniques, and
e) MNCs enjoy faster transportation and adequate warehousing facilities
3) Financial superiorities: -
MNCs also enjoy a number of financial advantages over domestic firms. These are: -
a) Availability of huge financial resources with the MNCs helps them to transform business
environment and circumstances in their favor.
b) MNCs can use the funds more effectively and economically on account of their activities in
numerous countries.
c) MNCs have easy access to international capital markets, and
d) MNCs have easy assessed to international banks and financial institutions.
4) Technological superiorities: -
MNCs are technologically prosperous on account of high and sustained spend on R&D.
developing countries on account of their technological backwardness welcome MNCs to their
countries because of the attendant benefits of technology transfer.

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8.CHALLENGES FACED BY MNC:
There is no company without problems it is facing. Whether an organization is big or small, there
will certainly be some sort of problems or negative factor/influence militating against its survival
or continuity. Weihrich and Koontz (1994) states that the operation of multinational companies
needs to be weighed against the environmental challenges and most of the challenges being faced
by multinational companies are:
1. There is usually acute shortage of manpower - people with lack of managerial and technical
skills
2. The challenge of unfriendly business environment
3. There is usually the problem of conflicting interest among the three parties - the government,
the MNC and the general public
4. There may be huge cost of labour in the host country, at least to get the expatriate managers
from home country or somewhere else
Conclusively, the above mentioned authors have given all round and comprehensive note on the
benefits of MNCs to the host country where they operate and as well highlighted the derivable
benefits to the MNCs themselves from the host country. Likewise, in spite of the challenges and
the problems being faced by these MNCs, they still continue to survival and waxing stronger.

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9.ROLE OF MNC IN INDIA
There are a number of reasons why the multinational companies are coming down to India. India
has got a huge market. It has also got one of the fastest growing economies in the world. Besides,
the policy of the government towards FDI has also played a major role in attracting the
multinational companies in India.
For quite a long time, India had a restrictive policy in terms of foreign direct investment. As a
result, there was lesser number of companies that showed interest in investing in Indian market.
However, the scenario changed during the financial liberalization of the country, especially after
1991. Government, nowadays, makes continuous efforts to attract foreign investments by
relaxing many of its policies. As a result, a number of multinational companies have shown
interest in Indian market.
Profit of MNCs in India
It is too specify that the companies come and settle in India to earn profit. A company enlarges
its jurisdiction of work beyond its native place when they get a wide scope to earn a profit and
such is the case of the MNCs that have flourished here. More over India has wide market for
different and new goods and services due to the ever increasing population and the varying
consumer taste. The government FDI policies have some how benefited them and drawn their
attention too. The restrictive policies that stopped the company's inflow are however withdrawn
and the country has shown much interest to bring in foreign investment here.

Besides the foreign directive policies the labour competitive market, market competition and the
macro-economic stability are some of the key factors that magnetize the foreign MNCs here.
Following are the reasons why multinational companies consider India as a preferred destination
for business:
 Huge market potential of the country

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  FDI attractiveness
 Labor competitiveness
 Macro-economic stability
 Advantages of the growing MNCs to India
There are certain advantages that the underdeveloped countries like and the developing countries
like India derive from the foreign MNCs that establishes. They are as under:
 Initiating a higher level of investment.
 Reducing the technological gap
 The natural resources are utilized in true sense.
 The foreign exchange gap is reduced
 Boosts up the basic economic structure.
Disadvantages of MNCs
Disadvantages of having an MNCs in a developing country like India are as under-

 Competition to SMSI
 Pollution and Environmental hazards
 Some MNCs come only for tax benefits only
 Exploitation of natural resources
 Lack of employment opportunities
 Diffusion of profits and Forex Imbalance
 Working environment and conditions
 Slows down decision making
 Economical distress

Top MNCs in India

The country has got many M. N. C.s operating here. Following are names of some of the most
famous multinational companies, who have their headquarters of operational branches based in
the nation:

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 IBM: IBM India Private Limited, a part of IBM has been operating from this country
since the year 1992. This global company is known for invention and integration of
software, hardware as well as services, which assist forward thinking institutions,
enterprises and people, who build a smart planet. The net income of this company post
completion of the financial year end of 2010 was $14.8 billion with a net profit margin of
14.9 %. With innovative technology and solutions, this company is making a constant
progress in India. Present in more than 200 cities, this company is making constant
progress in global markets to maintain its leading position.

 Microsoft: A subsidiary, named as Microsoft Corporation India Private Limited, of the U.

S. (United States) based Microsoft Corporation, one of the software giants has got their
headquarter in New Delhi. Starting its operation in the country from 1990, this company
has got the following business units:
o Microsoft Corporation India (Pvt.) Limited (Marketing Division)
o Microsoft Global Services India
o Microsoft Global Technical Support Centre
o Microsoft India Development Center
o Microsoft IT
o Microsoft Research India
The net income of Microsoft Corporation grew from $ 14, 569 million in 2009 to $ 18,
760 million in 2010. Working in close association with all the stakeholders including the
Government of India, the company is committed towards the development of the Indian
software as well as I. T. (Information Technology) industry.

 Nokia Corporation: Nokia Corporation was started in the year 1865. Being one of the
leading mobile companies in India, their stylish product range includes the following:
 Normal mobile handsets
 Smartphones
 Touch screen phones
 Dual sim phones
 Business phone

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The net sales of the company increased by 4 % in the last financial year with sales of EUR
42.4 billion as compared to 2009's EUR 41 billion. Over the past few years, this company in
India has been acquiring companies, which have got new and interesting competencies and
technologies so as to enhance their ability of creating the mobile world. Besides new
developments to fight against mineral conflicts, they are even to set up Bridge Centers in the
country for supporting re-employment. Their first onsite for the installation of renewable
power generation are already in place.

 PepsiCo: PepsiCo. Inc. entered the Indian market with the name of PepsiCo India from
the year 1989. Within a short time span of 20 years, this company has emerged as one of
the fast growing as well as largest beverage and food manufacturer. As per the annual
report of the company in the last business year, the net revenue of PepsiCo grew by 33 %.
By the year 2020, this food manufacturing company intends to triple their portfolio of
enjoyable and wholesome offerings. The expansion of their Good-For-You portfolio is
believed to be assisting the company in attaining the competitive advantage of the
growing packaged nutrition market in the world, which is presently valued at $ 500
billion.

 Ranbaxy Laboratories Limited: Ranbaxy Laboratories Limited, one of the biggest

pharmaceutical companies in India, started their business in the country from the year
1961. The company made its public appearance in 1973 though. Headquartered in this
nation, this international, research based, integrated pharmaceutical company is the
producer of a huge range of affordable cum quality medicines that are trusted by both
patients and healthcare professionals all over the world. In the business year 2010, the
registered global sales of the company was US $ 1, 868 Mn. Successful development of
business forms the key component of their trading strategy. Apart from overseas
acquisitions, this company is making a continuous endeavor to enter the new global
markets, which have got high potential. For this, they are offering value adding products
as well.

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 Reebok International Limited: This global brand is a famous name in the field of sports
as well as lifestyle products. Reebok International Limited, a subsidiary of Adidas AG, is
based in U. S. A. (United States of America) started its operation in 1890s. During the
last financial year, Adidas's currency neutralized group sales increased by 9 %. Apart
from their alliance with CrossFit that is among the largest contemporary fitness
movements, in the current year, Reebok's announcement of its partnership with artist,
designer and producer Swizz Beatz reflects its long term future growth.

 Sony: Sony India is a part of the renowned brand name Sony Corporation, which started
their business operation in the year 1946 in Japan. Established in India in November
1994, this company has captured one of the leading positions in the field of consumer
electronics goods. By the end of the business year 2010 on 31st March, 2011, the
company showed a remarkable increase in the share related to numerous categories. Sony
India is planning to invest around INR. 150 crore for the marketing of the activities
related to ATL and BTL. As far as Bravia TVs are concerned, they are looking forward to
hold their market share of 30 %. In between the last and the current financial year, the
number of their outlets in the country increased by 1, 000.

 Tata Consultancy Services: Commonly known as T. C. S., this multinational company is

a famous name in the field of I. T. (Information Technology) services, Business Process
Outsourcing (B. P. O.) as well as business solutions. This company is a subsidiary of the
Tata Group. The first center for software researching was established in the country in
1981 in the city of Pune. Tata Consultancy earned a growth of 8.9 % during the latest
quarter of this financial year, which ended on 30th September, 2011. This renowned
company is presently looking forward to the 10 big deals that they have received besides
the Credit Union Australia's contract as well as Government of Karnataka's INR. 94 crore
deal for a total period of 6 years. In this current business year, they are about to employ
60, 000 people to meet their business requirement.

24
 Vodafone: Vodafone Group Plc is an international telecommunication company,
which has got it's headquarter based in London in the United Kingdom (U. K.).
Earlier known as Vodafone Essar and Hutchison Essar, Vodafone India is among the
largest operators of mobile networking in the country. The parent company Hutchison
started its business in the year 1992 along with the Max Group, which was its
business partner in India. Much later in 2011, Vodafone Group Plc decided to buy out
mobile operating business of Essar Group, its partner. The turnover of the Vodafone
Group Plc after the completion of the last financial year grew to £ 44, 472 m from £
41, 017 m that was the turnover of the business year 2009.

 Tata Motors Limited: The biggest automobile company in India, Tata Motors
Limited, is among the leading commercial vehicles manufacturer in the country. They
are one of the top 3 passenger vehicle manufacturers. Established in the year 1945,
this company, a part of the famous Tata Group, has got its manufacturing units
located in different parts of the nation. Some of their well known products of the
company are categorized in the following heads:
o Commercial Vehicles
o Defence Security Vehicles
o Homeland Security Vehicles
o Passenger Vehicles

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10. Conclusion

After discussing various aspects of MNCs in developing country like India the big question
before us is whether MNCs play positive or negative role in developing countries? Generally
the governments of developing countries don’t keep control on the working of MNCs, which
is major fault on their side. MNCs can be helpful for developi which is major fault on their
side. MNCs can be helpful for developing countries only when they are kept under control.
We should not give incentives to the MNCs only because they are coming from some
powerful advanced countries. So MNCs should face same rules and regulations as the
domestic industries of the developing countries are facing.

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4. Jump up^ The History Channel, Lost Worlds: Knights Templar, July 10, 2006, video documentary written and

directed by Stuart Elliott.

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