Multinational Companies (MNCs of India)
Multinational companies shortly called as MNC, is a company that owns or controls production in more than one country.MNCs set up its offices and industries for production in regions where they fulfilled requirements.Due to India’s growing economy,globalization,and its potential in the market,many multinational companies are coming to India to expand their business.There are many Multinational companies in india like Amazon,Wipro, Infosys,coca cola, PepsiCo, Tata, Google,Ranbaxy etc. Which may related to production of science and technology things,food, essential goods,material or pharmaceutical etc
Advantages of MNCs
Increase Employment– Foremost advantage of MNCs is ,They create jobs in India and tend to increase employment
Increase in GDP– MNCs help to boost the India's GDP by creating consumption expenditure since more people are in paid employment.
Adopts Modern Technology – MNCs adopts latest and upgraded technology from advanced countries. This help developing And technically backward countries to improve the technological leveland also helps them to improve their technological areas and innovation things.
Overall Development – The investment, Employment, Employment and income levels of the country increases due to working of MNC’s.
Disadvantages of MNCs
Farm areas to company areas :MNCs need more place to establish company,so they may convert farm fields to company areas,which will leads to decrease of farm areas.
Loss of Natural Resources – MNCs use natural resources in order to make huge profit which results in the depletion of the natural resources thus causing a depletion of natural resources.
Impact on environment,leads to Pollution– Some of MNCs which related to pharmaceutical,foods, leather may dispose Hazardous waste to environment which may leads to environment (water and air pollution)pollution.
Loss to Local and small Businesses – MNCs products sometimes lead to the kill the local small businesses and handicrafts.thus killing the local businesses which exists in the country and also replace the local products.
Impact On Indian cultures–Some of MNCs remove local and traditional cultures. These companies increase the culture of fast food and soft drinks. If we see Pizza,burger and coke are type of junk food which are not good for health but some MNCs still promotes it.
Money flows – As MNCs operate in different countries a large sum of money flows to foreign countries(owner) as payment towards profit which results in less efficiency for the india,As their currency value increases and ours decreases.
Increase of Prices–MNCs vests too much Power and water, that leads to increase of prices which may burden country people And scale industries