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PROGRAM - MBA - SEMESTER - 3

SUBJECT CODE & NAME - IB0012 Management of


Multinational Corporations
1.
Define Multi-National Corporations & Transnational
Corporations? What are the Main difference between MNC
& TNC?
Multinational Corporation: Definition and Characteristics
Multinational Corporations (MNCs) are business entities that operate in more
than one country. MNCs are entities that undertake foreign direct investment.
They own or control income generation assets in more than one country,
produce goods and services in the host country and sell in international
markets. In other words, MNCs have their home in one country but operate in
many countries under different laws, customs and regulations.

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2.
What are the different
structures discuss in detail?

types

of

organizational

Types of Organizational Structures


In order to operate efficiently, an organization needs to develop a structure
that fulfills its requirements. For many organizations, an organizational
structure refers to a hierarchy of people and their functions. The character of

the organization and its values are reflected through the organizations
structure.
Hence, it is essential to learn and understand an organizations structure
before entering into a business deal with them. Knowledge of an
organizations structure also proves to be helpful when applying for a job in
that organization. Based on the nature of business and values, an
organization adopts one of the many structures available. An organization
usually follows one

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3. Write a note on concept of organizational control &


characteristics of effective control?
Concept of Organization Control
Control is very important both in organized living as well as living
organizations. When things go smoothly as planned, they are considered to
be under control. Self-control is a word we are all familiar with and which
simply means that we discipline ourselves in such a manner that we strictly
adhere to our plans for our lives and generally do not deviate from these
plans. Controls are there to ensure that events turn out the way they are
intended to. It is a dynamic process, requiring deliberate and purposeful
actions in order to ensure compliance with the plans and policies previously

developed. This means that the managerial functions of planning and

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4. Explain in detail about logistic system analysis & tradeoffs of logistic analysis.
1. Logistics System Analysis
The primary objective of logistics system analysis is the design of logistics
system that supports the strategic goals of the organization. Thus, the very
starting point of the analysis of logistics management is the understanding of
the goals and strategies of the organization. When we say organizations goal
and strategy, we mean, the choice of produces, markets to be served, level
of service. All these factors affect the procurement, distribution,
manufacturing and inventories as must be integrated and should support the
strategy.

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5. Define Foreign Direct Investment & types of Foreign


direct investment?
Foreign Direct Investment (FDI): Meaning and Definition
Foreign direct investment is one of the most effective methods of crossborder investing. A foreign national may want to invest in a country offering
new markets, higher returns or cheaper factor costs.
Generally, there are two kinds of cross-border investments.
(i) Foreign Direct Investment (FDI): Investments made by a company or
entity based in one country, into a company or entity based in another
country
(ii) Foreign Portfolio Investment (FPI):Investments undertaken for the
purpose of returns without any burden of decision-making United Nations
Conference on Trade and Development (UNCTAD) defines FDI as an
investment made to acquire lasting interest in enterprises

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6. Explain in detail Foreign Policy of India.

FDI Policy of India


In order to augment FDI inflows, the government had taken various steps to
liberalize the FDI regime in 2010 by allowing overseas investments in beekeeping and share-pledging for raising external debt. The government also
allowed hundred per cent foreign investment in single-brand retail.
1. Routes for FDI in India
The two routes for FDI investment in India are:
(i) Government Route: For investment in business sectors requiring prior
approval from the Foreign Investment Promotion Board (FIPB).

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