Presentation of IT

Presented To:- Ms FatimaPresented By:- Ahmad Waqas Maqbool TariqTopic:- Multinational Company

Content History. Definition. Multinational Companies In

Pakistan. Advantages and

Disadvantages Of Multinational Companies in Pakistan.

History And Evolution of MNCs:

• These corporations originated early in the 20th century and expanded after World War II.

• A multinational corporation developed new products in its native country and manufactured them abroad.

• Almost all the earliest and largest multinational firms were either American, Japanese, or West European.

History And Evolution of MNCs:

• During the last three decades, many smaller corporations have also become multinational.

• Such enterprises maintain that they create employment, create wealth, and improve technology in countries.

What is a Multinational Company ???

It is a corporation that:

Manages production

In more than one country

Delivers services

And/or

Definition of multinational company

When a Corporation that is Registered in More than one Country or that has Operations in More than one Country may be Attributed as MNC. Usually, it is a large Corporation which both Produces and Sells goods or services in various Countries. It can also be Referred to as an International Corporation. We also Known Multinational Companies as International Companies.

How Is A Company Classified As An MNC?

Subsidiaries in foreign countries;

Operations in a number of countries;

High proportion of assets in or/ and revenues from global operations;

Shareholders are from different countries.

Multinational Companies In Pakistan

History of Multinational company in Pakistan.

MNCs in Pakistan. After the boom period of 90s

• The presence of multinational corporations in Pakistan dates back to the early 1930s , siemens is perhaps the oldest in the industrial field having set up in 1932.

• Unilever(formerly lever Brothers) , imperial tobacco. Shell and burma oil came soon after independence in 1947

• A new batch of MNCs in Pakistan arrive in the period of the 90s. Prorctor and gamble (P & G) started operations.

• Other global companies such as telenor , warid , Barclays commenced operations.

• More multination corporations are entering in Pakistan and in the more future are expected.

Advantages

To the Home Country

To the Host Country

Advantages of MNCs to the Host Country:

• Transfer of technology and capital.

• Increase in the investment level and thus, the income and employment in the host country.

• Greater availability of products for local consumers.

• Increase in exports and decrease in imports.

Advantages of MNCs to the Home Country.

• Acquisition of raw materials from abroad.• Inflow of income from overseas profits,

royalties and management contracts. • MNC's help to maintain favorable balance of

payment of the home country in the long run. • They create employment opportunities to the

people of home country both at home and abroad.

Disadvantages of Multinational Company

Disadvantages

To the host country

To the home country

To The Host Country

• MNC's may kill the domestic industry by monopolizing the host country's market.

• In order to make profit, MNC's may use natural resources of the home country indiscriminately and cause depletion of the resources.

• A large sums of money flows to foreign countries in terms of payments towards profits, dividends and royalty.

To the home country

• MNC's transfer the capital from the home country to various host countries causing unfavorable balance of payment.

• MNC's may not create employment opportunities to the people of home country if it adopts geocentric approach.

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

Famous multinational companies logos

PRESENTED BY:Ahmad Waqas AND Maqbool Tariq

Any Question …