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Multinational Companies
Large firms with significant business operations overseas, selling goods and services on a global scale, characterized by huge assets, advanced technology, qualified labor, and powerful marketing.
Foreign Direct Investment (FDI)
Investment made by firms in a foreign country, with a significant portion originating from Multinational Companies (MNCs).
Reasons for Emergence of MNCs/FDIs
Exploitation of economies of scale, access to natural resources or cheaper goods, lower transportation and communication costs, and access to a large customer base.
benfits of fdi/mncs
govt support, job creation, extra output by host nation, higher wages, investment in infrastructure, developing skills, developing capital, contribution to taxes
Note
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