Roleofmncs

ROLE OF MNC’s IN A HOST COUNTRY

BY

A.B.M. ASHIQUR RAHMAN

Green University Bangladesh

ID. 120306075

CONTENT

• MNC

• FEATURES OF MNC

• MNC’s IN HOSTING COUNTRY

• IMPACT ON HOSTING COUNTRY

• SWOT ANALYSIS

• ADVANTAGES AND DISAVANTADES

• ROLES OF MNC IN HOSTING COUNTRY

• CONCLSION

MNC

• An enterprise operating in several countries but managed from one (home) country.

FEATURES OF MNC

• Big size

• Huge intellectual capital

• Operates in many countries

• Large number of customer

• Large number of competitors

• Structured way of decision making

MNC’s IN HOSTING COUNTRY

• Huge market potential of the country

• FDI attractiveness

• Labor competitiveness

• Macro-economic stability

• One billion plus population

IMPACT ON HOSTING COUNTRY

• Large amount of tax collections through MNC’s

• Increased revenue

• Economic health improved

• Employment increased

• Foreign relation increased

ADVANTAGES AND DISAVANTADES

ADVANTAGES

• Increase in investment level

• Transferring the technology

• It increase host company export than import

• Integrating national economy

• Implementing new innovations

ADVANTAGES AND DISAVANTADES CONT…

DISADVANTAGES

May acquire monopoly power

Underestimate local culture

Think about profit rather than the host country interest

Inflexibility in terms and conditions

Heavy use of non-renewable natural resources

ROLES OF MNC IN HOSTING COUNTRY

• Profit maximization

• International network of marketing

• Diversification policy

• Concentration in consumer goods

• MNC’s & Process of planned economic development

• Cultural explosion

CONCLUSION

• Competition increased and more employment opportunity are available

• Gives advantages to domestic companies by purchasing of raw materials

• New company having network to expand their business

QUESTIONS???