Page 243 - DMGT401Business Environment

Business Environment

Notes Multinational Enterprise: Company that takes a global approach to foreign markets and
production

10.5 Self Assessment

State whether the following statements are true or false:
1. FDI would also include the loans and advances made by foreign companies to Indian
companies.

2. Coca Cola was asked to leave India because they were not adhering to the rules of Indian
market.
3. Companies like IBM and HP have opened their call centre in India only to exploit the cost
benefits because labor is costly in their own country.
4. MNC have a positive impact on Indian economy in the sense that people now in addition
to Maruti and Tata, also like to buy Hyundai, Ford and Toyota.

5. Most of the Indian public sector banks are Multinational Corporations.
6. Products like petrochemicals, fertilizers etc. were once in the canalized list.
7. One of the major reasons for setting up SEZs is to facilitate exports of a country.

Fill in the blanks:
8. Decisions regarding FDI are taken by the Indian Government with association
with…………………

9. Wal-Mart has taken entry into the Indian market via alliance with………………..
10. Companies like Swaraj Mazda, Bajaj Allianz, Mahindra Renault are types of ……………
companies.

11. The excess of imports over exports give negative………………..
12. Using technical and human cognitive skills of one nation by another nation is
called………………..

13. ……………….is the first Indian company to look beyond Indian market.
10.6 Review Questions

1. "The objective of the country as a whole was the attainment as far as possible, of national
sufficiency. International trade was certainly to be included but we were anxious to avoid
being drawn into the whirlpool of economic imperialism." What do you mean by the
statement?
2. Critically analyse the FDI policies of the Indian Government before 1991.

3. Write a short note on history of MNCs in Indian market.
4. List the factors that led to the exit of Coca Cola from India. How did this step affect the
Indian market? Do you think Indian Government took a wrong decision?

5. "India gain's in attractiveness because of its market size and its potential is diminished by
negative assessment of its regulatory environment." Discuss.
6. "A nation may have comparative advantage over others because of certain factors of
production." Comment in context of the Indian market.

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