Business Daily from THE HINDU group of publications
Monday, Nov 16, 2009
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Business Daily from THE HINDU group of publications Monday, Nov 16, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Mentor
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Corporate Columns - For the Asking Effect of MNCs
What are MNCs? What exactly are their objectives? Panchapakesan, Madurai
A company that has operations in at least six other locations in other countries qualifies for this honorific. Multinational corporations play a vital role in the global trade and investments. Some of them have turnovers that are much larger than the GDP of some small countries. MNCs fan out to other countries in keeping with the theory of product cycle — when the demand for a new product reaches a saturation point in the country of origin. Even otherwise profit maximisation is every company’s objective which can be realised only if it has global footprints. They have done good to developing economies by bringing precious capital and technology that produces multiplier effect on these economies, such as increased employment opportunities, better infrastructure, greater tax collections, etc. Wherever possible, MNCs first exhaust the export possibilities for obvious reasons before putting up plants in developing nations.
S. MURLIDHARAN More Stories on : Corporate | For the Asking
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