A multinational corporation ( MNC ) is a corporation that has its facilities and other assets in at least one country other than its home country. Such companies have offices and factories in different countries and usually have centralized head office where they co-ordinate global management. It is an organization that owns or controls production of goods or services in one or more countries other than their home country.It can also be referred as an international corporation.

At the time of Independence, most of our industries were concerned with consumer goods. Barring two steel plants, we had hardly any capital goods or intermediate goods industries. an interesting study on "the impact of foreign subsidiaries on India's balance of payments" for the year covering 133 companies (total 171) operating in India Dr. S.K. Goyal has drawn out following conclusions.

(i)Majority of foreign subsidiaries operating in India either belong to the U.K. (68%) or the U.S.A. (15%). (ii) Most of the foreign subsidiaries have raised financial resources from within India, and the transfer of capital from the parent company has been marginal. (iii) Foreign companies like the Impe­rial (now Indian) Tobacco Company (ITC) has re­cently diversified its activities to hotel industry constructing a chain of hotels all over India. (iv) A number of foreign companies in India are acquiring the character of multi-product and multi- industry enterprises.

o The host country is likely to lose the economic sovereignty. o The heart nation may also experience some loss of control over the own economy. o Felling that labour is being exploited by the MNC. o Lost of cultural moorings. o The problem of dumping.  EXAMPLE-Chinese products are priced low in Indian market.

 Profit maximization.  Increased revenue.  Economic health improved.  Employment increased.  Foreign relation increased.  International network of marketing.  Concentration in consumers goods.  Cultural explosion.

 Increasing international competition.  Global consumer awareness.  Technological advancement.  Privatization programmes.  Regional economic integration.  Reduction in friction among nations.  Growing role of private sector in developing countries.  To complete basic needs of consumers.

o Transfer of technology, capital and entrepreneurship. o Increase in the investment level and thus, the income and employment in the host country. o Greater availability of products for local consumers. o Increase in exports and decrease in imports.

 Acquisition of raw materials from abroad.  Technology and management expertise acquired from competing in global markets.  Export of components and finished goods for assembly or distribution in foreign markets.  Inflow of from overseas profits, royalties and management contracts.

o Trade restrictions imposed at government level. o Limited quantities of imports o Effective management of a globally dispersed organization o Slow down in the growth of employment in home countries o Destroy competition and acquire monopoly

 Creation of false needs in consumers.  Interference and dominance in the internal affairs of the sovereign society.  Invasive advertising and corporate lobbying.  Creation of monopolies in the market and the elimination of local competitors.