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BE Presentation

The document discusses various topics related to business, including multinational corporations (MNCs), foreign direct investment (FDI), global outsourcing, and regulations like FEMA and FERA. It provides definitions and impacts of MNCs, advantages and disadvantages of FDI, and benefits of global outsourcing. The document also compares instruments like GDR and ADR and describes FEMA and FERA acts regarding foreign exchange in India.

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Utsav Modi
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17 views21 pages

BE Presentation

The document discusses various topics related to business, including multinational corporations (MNCs), foreign direct investment (FDI), global outsourcing, and regulations like FEMA and FERA. It provides definitions and impacts of MNCs, advantages and disadvantages of FDI, and benefits of global outsourcing. The document also compares instruments like GDR and ADR and describes FEMA and FERA acts regarding foreign exchange in India.

Uploaded by

Utsav Modi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ADR,GDR,FEMA,FERA AND ITS

EFFECT ON BUSINESS
GLOBAL OUTSOURCING,MNC,FDI
AND ITS EFFECT ON BUSINESS
Presented to: Dr .CP Thakor
Presented by: Mahi Singh (18)
Bhoomika Vaswani (24)
GDR, ADR, FEMA & FERA
GDR
IT’S IMPACT ON BUSINESS
IT’S IMPACT ON BUSINESS
ADR
IT’S IMPACT ON BUSINESS
IT’S IMPACT ON BUSINESS
DIFFERENCE BETWEEN GDR
& ADR
FERA(FOREIGN EXCHANGE
REGULATION ACT)
FERA
FERA
FEMA(FOREIGN EXCHANGE
MANAGEMENT ACT)
FEMA
MULTINATIONAL
CORPORATION
Why would a business want to become a What are some risks that multinational
multinational company? corporations face?

 Usually, the primary goal of a business is  Multinational corporations are exposed to


to increase profits and growth. If it can risks related to the different countries and
grow a global customer base and increase regions in which they operate. These can
its market share abroad, it may believe that include regulatory or legal risks, political
opening offices in foreign countries is instability, crime and violence, cultural
worth the expense and effort. Companies sensitivities, as well as fluctuations in
may also see a benefit in certain tax currency exchange rates. People in the
structures or regulatory regimes founds home country may also resent the
abroad outsourcing of jobs.
MULTINATIONAL
CORPORATION
 A multinational corporation (MNC) is a company that has business operations in at least one
country other than it’s home country. By some definitions, it also generates at least 25% of its
revenue outside of its home country.
 Generally, a multinational company has offices, factories, or other facilities in different
countries around the world as well as a centralized headquarters which coordinates global
management.
 Multinational companies can also be known as international, stateless, or transnational
corporate organizations or enterprises. Some may have budgets that exceed those of small
countries.
 EXAMPLE: Multinational corporations include IBM, Berkshire Hathaway, Apple, Microsoft,
Amazon, and Walmart
MULTINATIONAL
CORPORATION
ADVANTAGES DISADVANTAGES

 Employment  Threat to domestic Industries


 Lower labor costs  No advantages for the poor
 They support other companies  Laws
 Inflow of capitals  Promotion of foreign culture selfishly
 Innovation  Pollution of the environment
 Abuse of humans rights
FOREIGN DIRECT
INVESTMENT (FDI)
 FDI in India was introduced in the year 1991 under the FEMA. It commenced with the base line
of 1 billion dollars 1990.
 Foreign direct investments (FDIs) are substantial, lasting investments made by a company or
government into a foreign concern.
 FDI investors typically take controlling positions in domestic firms or joint ventures and are
actively involved in theirs managements.
 The investments may involve acquiring a source of materials, expanding a company’s footprint,
or developing a multinationals presence.
 The two top recipients of FDI over the past several years have been the United States and China.
 The U.S. and other organization for Economic Co-operation and development (OECD) countries
have been the top contributors to FDI beyond their borders
ADVANTAGES OF FDI
 Brings in financial resources for economic development
 Brings new technologies,skills,knowledge etc.
 Generates more employment opportunities for people
 Brings in a more competitive business environment in country
 Improves the quality of product and service in sector.
GLOBAL OUTSOURCING
 Global outsourcing is a term reserved for outsourcing to a third party based outside of your
country and is often commonly referred to as offshoring.
 One of the top benefits of global outsourcing is saving on costs
 The global business process outsourcing (BPO) industry was valued at $251.1 billion in 2022
and its expected to grow to $435.89 billion by 2028. With compound annual growth rate
(CAGR) OF 8.5%.
GLOBAL OUTSOURCING
ADVANTAGES DISADVANTAGES

 Reduce Cost  Language and Cultural Barriers


 Tax Incentives  Physical Distance
 Expand Quickly  Rules And Regulation

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