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What are arrangements made by government in India to attract MNCs?

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What are arrangements made by government in India to attract MNCs?

Answer: SEZs are made by the govt. to attract MNCs as it does not levy taxes for first five years and provide them full security.. flexible labour laws are provided .

What policy should government of India follow regarding MNCs?

MNCs operating in India should have a clear set of anti-bribery rules; on its part the Indian government needs to strengthen anti-corruption laws. Why do businesses find it difficult to build a compliance culture within organisations in India?

What are the factors that contribute to the growth of MNCs?

a) Huge financial resources. b) More effective and economical utilisation of funds through transfer of excess funds from one country to another. c) Easy access to foreign capital markets. d) Easy mobilisation of high quality resources of different types.

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Why Indian market has become a priority for MNCs?

Today, the Indian market has become a priority for MNCs looking to get a bigger share of the global market. Consequently, large number of MNCs have taken their business to the next level, positioning India both as a business hub serving global clients and as a base for exports.

What are two main benefits that the government of India would give to attract foreign investment in the country?

There are many ways in which FDI benefits the recipient nation:

  • Increased Employment and Economic Growth.
  • Human Resource Development.
  • 3. Development of Backward Areas.
  • Provision of Finance & Technology.
  • Increase in Exports.
  • Exchange Rate Stability.
  • Stimulation of Economic Development.
  • Improved Capital Flow.

What are the steps taken by the government to attract MNCs?

In the recent years the Indian Government has taken special steps to attract foreign companies to invest in India: i The government has set up industrial zones called special Economic Zones SEZs. SEZs provide world class facilities – electricity water roads transport storage recreational and educational facilities.

What are the advantages of MNCs to host countries?

The potential benefits of MNCs on host countries include:

  • Provision of significant employment and training to the labour force in the host country.
  • Transfer of skills and expertise, helping to develop the quality of the host labour force.
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What are the advantages of multinational companies?

The main benefits of being a multinational company

  • Specialisation in production. The scale of many industries means firms split production into different countries.
  • Outsourcing.
  • Economies of scale.
  • Tax avoidance.
  • Employment of skilled labour.
  • Wider consumer base.
  • Evaluation.

What are the benefits of MNC?

What is the role of MNCs in India?

Some MNCs in India are tapping export markets and are helpful in improving the overall exports of India and thereby help in reducing trade deficits. MNCs helps host countries in maintaining better relations not just with their home countries, but also with the countries that they have trade relations.

What are the advantages of MNC?

List of the Advantages of Multinational Corporations

  • Multinational corporations provide an inflow of capital.
  • Multinational corporations reduce government aid dependencies in the developing world.
  • Multinational corporations allow countries to purchase imports.
  • Multinational corporations provide local employment.

What do you think has to be enhanced for Indian companies to be successful globally?

Some of the more important of such generic ones are quality, technology and responsiveness. The importance of quality in the quest to win in global markets, cannot be overstated. Being as good on quality as the competitors is not good enough. We need to be better than the best.

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How do MNCs operate in India?

They either operated in the form of subsidiaries or entered into collaboration with Indian companies involving sale of technology as well as use of foreign brand names for the final products. The entry of MNCs in India was controlled by existing industrial policy statements, MRTP Act, and FERA.

What is the impact of MNCs on national income?

As a result of the entry of MNCs, India e.g. has attracted foreign investment with several million dollars. Because of their advanced technical knowledge, MNCs are in a position to properly utilise idle physical and human resources of the host country. This results in an increase in the National Income of the host country.

This results in an increase in the National Income of the host country. MNCs help the host countries to increase their exports. As such, they help the host country to improve upon its Balance of Payment position. MNCs carry the advantages of technical development 10 host countries.

What are the characteristics of MNCs?

MNCs control production activity with large foreign direct investment in more than one developed and developing countries. 7. MNCs are duopolistic in nature: 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.

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