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A multinational company has the need to have a product produced. It has the money and expertise to set up manufacturing facility's India has people that are sitting around twiddling their thumbs because they have nothing to do. So if the company and the unemployed people get together they both benefit. India is a country and country's are notoriously bad at business dealings. Look at what happened in the USSR.

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Q: Why does India need multinational companies?
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What is the role of MNC in India?

There is no distinction between an MNCs & a domestic company in India policy regarding MNCs is the same as for Foreign Private Capital in indie. Large & dominant MNCs along with Indian Companies are covered under MRTP Act. MNCs are specifically covered under Foreign Exchange Management Act (FEMA).Now, we study the operation of MNCs in India:1.) Profit Maximisation.2.) International Network of marketing.3.) Diversification Policy.4.) Concentration in Consumer goods.5.) Location of central control offices.6.) Techniques to achieve Public Acceptability.7.) Existence of Modern & Sophisticated Technology.8.) Business but not social Justice.9.) MNCs & Process of planned Economic Development in India.10.) Cultural Explosion.Read more: What_is_the_role_of_Multinational_companies_in_India


Is multinational companies are as a blessed or curse for host countries?

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One of the merits of multinational companies is that they earn a lot of revenue and help the economy in the country where they are based. A problem with these companies is that they oftentimes outsource labor, which results in layoffs and unemployment .

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Rules regulation of multinational companies in India?

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