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???