Economics(Paper-4) - Shivaji University

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2) Local Enterprises are encouraged to invest more in ancillary industries or in collaboration with foreign enterprises. 3) It helps in filling the extraction and refining manufacturing for home production and exports. 4) They are operating in service industries such as banking, insurance, shipping hotels and so on. Thus, the Private foreign investment are generally followed by Multinational Companies. Thus they are animals in the 200. The MNC’s come in various shapes, forms and sizes. B) Multinational Corporations : 1) Meaning : A multinational corporations (MNC) is a corporation company or enterprise or firm within headquarter in a developed countries like U.K., U.S.A., Germany, Japan etc. and operate in developed and developing countries. They are also known as Transnational Corporations (TNCs) According to U.N. Report ‘Multinational Corporation deal with group of enterprises which own or control production or service of facilities outside the country in which they are based. Such enterprises are not always incorporated, they can also be corporative or state owned entities. According to Lal and Streeten “Multinational Corporations in general are very large firms with vide spread operations which are clearly international in character and have more than five foreign subsudirics or more than 15% of total sales produce abroad, and acting in a convenient manner to achieve maximum profits or growth.” II) Features / Characteristics of MNC’s : 1) Its head quarter in developed countries like U.K., U.S.A. etc. 2) It operates in both developed or developing countries. 3) It may have its group of subsidiary companies with their branch network operating in various countries. 4) They have gigantic size. 5) They have multi-national stock ownership. 6) The profits of the corporation is divided among the countries in proportion of their share capital. 7) They have multi-national management. 8) It possess vast resources for production, capital technology marketing and exports etc. 123456789012345678901234567890121234567 123456789012345678901234567890121234567 54 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567
III) Advantages of Multi-national Corporations : Generally developing countries have to depend on MNC’s. The main benefits of the MNC’s are as follows. 1) Capital and Technology : The developing country face the acute shortage of capital as well as technology, this can be met with the MNC’s with their operational and management. The capital intensive technology can be drawn through the MNC’s. Thus, it is very important advantage to the receiving countries. 2) Rabid Industrialization : The MNC’s provide better environment for the rapid industrialization in receipient country through the cheap foreign capital and new technology. 3) Expolitation of Domestic Resources : The operation of the MNC’s in developing countries like India and others, enabled them to exploit their domestic resources and increase productivity in the exploration of new resources. Further, they help the developing economies to integrate with the global economy. 4) Space for International Market and Export Promotion : The MNC’s produce commodities and services in a huge quantity with better quality, which help to recipient country to capture domestic as well as international market. This results in increased size of export. 5) Large scale employment : Along with increase in savings, investment and production in developing and underdeveloped countries, the MNC’s presents the opportunity of enhancing employment on a large scale. 6) Foreign exchange Reserves : MNC’s plays a vital role in meeting the deficit and increasing foreign exchange reserves in under developed and developing countries by increasing their export both of semi finished and finished products. 7) Infrastructures : MNC’s assist in the development of infrastructural facilities in recipient countries, which help in the development of other sectors of the economy, such as, agriculture, mining trade, commerce and other related activities. 8) Increase in the standard of living : Multinational corporations spend huge funds on research and development (R & 123456789012345678901234567890121234567 123456789012345678901234567890121234567 55 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567
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B. A. Part-III : Economics Paper 4
Page 3 and 4: 7) “ Economic development is a pr
Page 5 and 6: underdeveloped countries in compari
Page 7 and 8: developing states through the progr
Page 9 and 10: 7) Goals : objectives. 8) Disguised
Page 11 and 12: UNIT - 2 Theories of Economic Growt
Page 13 and 14: structure of the traditional societ
Page 15 and 16: help of example, “If we take marg
Page 17 and 18: promote and enhance social welfare.
Page 19 and 20: B The Closed Economy : Assumptions
Page 21 and 22: B The Process of Economic Expansion
Page 23 and 24: consider the possibility of the cap
Page 25 and 26: gap between income and expenditure
Page 27 and 28: disequalising force is trade, which
Page 29 and 30: 8. Rostow developed his theory in
Page 31 and 32: UNIT - 3 Domestic Measures for Econ
Page 33 and 34: all kinds. Hence, capital formation
Page 35 and 36: policy. But these trio are and may
Page 37 and 38: 1) Provision of food to evergrowing
Page 39 and 40: the country.The central bank contro
Page 41 and 42: 7) Public Spending : Fiscal policy
Page 43 and 44: 3.3 Conclusion / Summary : Capital
Page 45 and 46: UNIT - 4 International Measures for
Page 47 and 48: Y P S C Import E D P O X1 X2 B X Ex
Page 49 and 50: for the developing countries has al
Page 51 and 52: they are entitled to get dividend a
Page 53: 4) Infrastructure : Since last thre
Page 57 and 58: oundaries of nation states. 2) Mean
Page 59 and 60: 4.3 Summary : 1) Role of Foreign Tr
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