GD on " Whom Does the MNCs help The Most? "
This is a hot topic of discussion in SSB interviews:
Let us find a few reasons and discuss the topic with reference to
a) It helps the Consumer
b) It helps the Economy of the country in which they establish
c) MNCs Themselves
About 10 years ago, our think tanks decided to open up the economy of our country by liberalisation and Globalisation, many MNCs entered the Indian Market. In a number of fields like, IT, infrastructure, consumer goods, food industry, automobiles etc.,
The entering of MNCs brought a huge change on the economic front. Today there are large numbers of MNCs that are opening in Indian Markets. They are present in almost every sector of our economy. Recently they have entered in the sector of outsourcing that is commonly called as CALL CENTRES.
Multinational Companies do have certain merits and De-merits on our economy, but with the changing scenario globally, they are the need of time.
CONSUMER:-
The Consumer is one happy lot after the MNCs entered our market. Today every item from shoes to cars, from Pepsi to McDonald's, Ice cream to aviation, they are every where.the consumers now have a wider choice to pick what they want. Because of this competition, even Indian products started manufacturing quality of good and also cost effective. The services have improve to a certain extent.
But some of the attractive items are still costly and getting them via friends who are settled abroad and coming to India seems to be cheaper. Some of the best brands are still out of reach for Indian buyers.
ECONOMY:
Positive Effects on our economy: The technology that the MNCs bring with them is not just that of a product, but also of management of an enterprise. Research and Development, marketing, helping in enhancement of the employment. There has been a phenomenal improvement in finance services and customer service. This is also an asset that remains with the country. In the case of India, the number of jobs offered by the MNCs rose from 41,161 in 1994 to 1, 44,9053 in 2014
In the Field of education there has been a remarkable increase and many universities have tied up with foreign universities.
Negative Effect; Under the influence of globalisation, most developed countries, instead of controlling the activity of MNCs are inviting them invest in crucial sectors of their economy. Some feel that the rich countries are preparing a debt-trap for the poor countries. They provide poor countries assistance on the condition of introduction of liberalisation and globalisation, which makes way for functioning of the MNCs. This increases the production of certain products. Exports also increase but imports increase more than the exports and that leads to a balance of payment problem. At critical moments, foreign forces strike again, capital starts to fly, value of domestic currency starts falling. Again the international agencies come to help with more strict terms and conditions and the helpless country becomes a victim and gets into a vicious circle from where it is not easy to come out.
Think about the AMWAY products- Costly- Imported stuff, many are lured into Multi level marketing and end up losing their money.
MNCs Itself:
The MNCs come into any country with an aim of making profit,. They invest heavily in setting up a project. They are also more powerful than any government on the earth. It is also feared that people in developing countries may have to leave their traditional professions and depend on the jobs and products created by the modern capitalist institutions. It is pointed out that MNC investment is limited essentially to the supply of second hand plant and machinery which is declared obsolete in their country. Ultimately nations have to depend on their own capabilities to achieve progress. Respect has to be earned through demonstration of independence, competence and clear sense of purpose. The MNCs cannot provide development by themselves. They can only provide helping hand to the process of growth.
Let us find a few reasons and discuss the topic with reference to
a) It helps the Consumer
b) It helps the Economy of the country in which they establish
c) MNCs Themselves
About 10 years ago, our think tanks decided to open up the economy of our country by liberalisation and Globalisation, many MNCs entered the Indian Market. In a number of fields like, IT, infrastructure, consumer goods, food industry, automobiles etc.,
The entering of MNCs brought a huge change on the economic front. Today there are large numbers of MNCs that are opening in Indian Markets. They are present in almost every sector of our economy. Recently they have entered in the sector of outsourcing that is commonly called as CALL CENTRES.
Multinational Companies do have certain merits and De-merits on our economy, but with the changing scenario globally, they are the need of time.
CONSUMER:-
The Consumer is one happy lot after the MNCs entered our market. Today every item from shoes to cars, from Pepsi to McDonald's, Ice cream to aviation, they are every where.the consumers now have a wider choice to pick what they want. Because of this competition, even Indian products started manufacturing quality of good and also cost effective. The services have improve to a certain extent.
But some of the attractive items are still costly and getting them via friends who are settled abroad and coming to India seems to be cheaper. Some of the best brands are still out of reach for Indian buyers.
ECONOMY:
Positive Effects on our economy: The technology that the MNCs bring with them is not just that of a product, but also of management of an enterprise. Research and Development, marketing, helping in enhancement of the employment. There has been a phenomenal improvement in finance services and customer service. This is also an asset that remains with the country. In the case of India, the number of jobs offered by the MNCs rose from 41,161 in 1994 to 1, 44,9053 in 2014
In the Field of education there has been a remarkable increase and many universities have tied up with foreign universities.
Negative Effect; Under the influence of globalisation, most developed countries, instead of controlling the activity of MNCs are inviting them invest in crucial sectors of their economy. Some feel that the rich countries are preparing a debt-trap for the poor countries. They provide poor countries assistance on the condition of introduction of liberalisation and globalisation, which makes way for functioning of the MNCs. This increases the production of certain products. Exports also increase but imports increase more than the exports and that leads to a balance of payment problem. At critical moments, foreign forces strike again, capital starts to fly, value of domestic currency starts falling. Again the international agencies come to help with more strict terms and conditions and the helpless country becomes a victim and gets into a vicious circle from where it is not easy to come out.
Think about the AMWAY products- Costly- Imported stuff, many are lured into Multi level marketing and end up losing their money.
MNCs Itself:
The MNCs come into any country with an aim of making profit,. They invest heavily in setting up a project. They are also more powerful than any government on the earth. It is also feared that people in developing countries may have to leave their traditional professions and depend on the jobs and products created by the modern capitalist institutions. It is pointed out that MNC investment is limited essentially to the supply of second hand plant and machinery which is declared obsolete in their country. Ultimately nations have to depend on their own capabilities to achieve progress. Respect has to be earned through demonstration of independence, competence and clear sense of purpose. The MNCs cannot provide development by themselves. They can only provide helping hand to the process of growth.
Comments
Post a Comment