Write a short note on MNCs with an example.
A ˜permanent worker' is entitled to health insurance, provident fund, overtime at a double rate. The permanent worker is also eligible for paid leave and has fixed working hours. Whereas a ‘ temporary worker' earns less than a permanent worker . He does not enjoy any of the benefits a permanent worker is entitled for. A day off from work means no wage and there are no fixed timings of work. The temporary worker can be dismissed from work any time.
Question-6
Write a short note on MNCs with an example.
Solution:
A MNC or Multinational Corporation is a company that owns or controls production in more than one nation. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. The cost of production is reduced considerably due to cheap labour and the MNCs earn great profits.
MNCs not only sell their finished products globally, the goods and services are produced globally. Because of this global production , today's consumer has a wide choice of goods and services at a very reasonable price.
Cognizant Technology Solutions is a MNC which provides end-to-end Solutions in Consulting, Application Value Management, Application Development, Re-engineering, and Platform Consolidation across all major technologies.
The company's Head Quarters is in New Jersey, USA.
The Company has Offices in the following countries.
(i) Canada
(ii) United Kingdom
(iii) Germany
(iv) Switzerland
(v) France
(vi) Malaysia
(vii) Singapore
(viii) Australia
(ix) China
(x) India
What are the various ways in which MNCs set up, or control, production in other countries?
How has liberalisation of trade and investment policies helped the globalisation process?
What was the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?
Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?
How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.