MULTINATIONAL COMPANIES

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MULTINATIONAL COMPANIES by Mind Map: MULTINATIONAL COMPANIES

1. is a organization that operates in two or  many countries

1.1. imports and exports goods and services

1.2. makes investments in other countries

1.3. manufacturing facilities or assembly operations in foreign countries

2. advantage

2.1. host countries

2.1.1. employment level inreasas

2.1.2. income increases

2.1.3. industries get latest techology

2.1.4. reduces imports and increases exports

2.1.5. increases balance of payments

2.2. home country

2.2.1. creates opportunities for marketing a product produced in home country

2.2.2. employment increases

2.2.3. can get new technology from other countries

2.2.4. maintains balance of payment

2.2.5. boost to industries as new technology introduced from other countries

3. disadvantages

3.1. host countries

3.1.1. outdated technology may come to other countries  from the home country

3.1.2. may become monopoly and kill the host countries industries

3.1.3. can be threat to host countries enocomy

3.2. home country

3.2.1. transfer of money happens from home country to other countries which can cause unfavorable balance of payment

3.2.2. As investments in foreign countries is more profitable, MNC's may neglect the home countries industrial and economic development.

4. top 10 multinational companies in india

4.1. MICROSOFT

4.2. IBM

4.3. NESTLE

4.4. P&G

4.5. COCA COLA

4.6. PEPSICO

4.7. CITYGROUP

4.8. SONY

4.9. HEWLETT PACKARD

4.10. APPLE

5. first mnc

5.1. east India company,in 1600

6. arises through globalization

6.1. businesses or other organizations develop internationally