MEANING AND ROLE OF MULTINATIONAL CORPORATIONS ( MNC)

MULTINATIONAL CORPORATIONS

Ø  MULTINATIONAL CORPORATIONS
INTERNATIONAL FINANCE
INDIAN ECONOMY
BUSINESS ENVIRONMENT

INTERNATIONAL FINANCE
INDIAN ECONOMY
BUSINESS ENVIRONMENT

Ø  WATCH VIDEO LECTURE AT SHASHI AGGARWAL ECONOMICS AND LAW CLASSES

Ø  INTRODUCTION

1. MULTINATIONAL CORPORATION TOOK BIRTH IN THE EARLY 1860
2. AFTER WORLD WAR SECOND MULTINATIONAL HAVE GROWN RAPIDLY
3. UNITED STATES WAS THE HOME OF MOST OF THE MNC
4. LARGE NUMBER OF CHINESE,JAPANESE AND EUROPEAN MULTINATIONALS
5. ONE OF THE FIRST MULTINATIONAL BUSINESS ORGANIZATION,THE EAST INDIA COMPANY WAS ESTABLISHED IN 1600
6. AFTER THE EAST INDIA COMPANY,THE DUTCH EAST INDIA COMPANY FOUNDED MARCH 20,1602 WHICH WOULD BECOME THE LARGEST COMPANY IN THE WORLD FOR NEARLY 200 YEARS

THEORY OF COMPARATIVE COSTS 1

Ø  CLASSICAL THEORY OF INTERNATIONAL TRADE 1

(THEORY OF COMPARATIVE COSTS)

SHASHI AGGARWAL ECONOMICS AND LAW CLASSES

Ø  THEORY OF COMPARATIVE COSTS 1

1. GIVEN BY DAVID RICARDO IN HIS BOOK,PRINCIPLES OF POLITICAL ECONOMY AND TAXATION (1817)
2. DAVID RICARDO BELIEVED THAT THE INTERNATIONAL TRADE IS GOVERNED BY THE COMPARATIVE COST ADVANTAGE RATHER THAN ABSOLUTE COST ADVANTAGE. A COUNTRY WILL SPECIALIZE IN THAT LINE OF PRODUCTION IN WHICH IT HAS A GREATER RELATIVE OR COMPARATIVE ADVANTAGE IN COSTS THAN OTHER COUNTRIES WILL DEPEND UPON IMPORT FROM ABROAD OF ALL SUCH COMMODITIES IN WHICH INDIA HAS RELATIVE COST ADVANTAGES.
3. ACCORDING TO THIS THEORY EVERY COUNTRY SHOULD SPECIALIZE IN PRODUCTION I.E SHE SHOULD EXPORT THOSE GOODS IN WHICH SHE HAS GREATER COMPARATIVE ADVANTAGE AND IMPORT THOSE GOODS IN THE PRODUCTION OF WHICH SHE HAS GREATER COMPARATIVE DISADVANTAGE