Clear & Blurred view about Multinational Companies

Clear & Blurred view about Multinational Companies
Clear & Blurred view about Multinational Companies


There is an increasing trend among Indians to boycott foreign goods. This trend is higher among the youth. I would like to clarify in the beginning that this attitude is not wrong provided it is directed only towards harmful substances and hazardous practices.

To protect their culture, people have started opposing everything foreign. A specific example would be the youngsters in Tamil Nadu spilling gallons of soft drinks on the roads during Jallikattu agitation. The awareness about their bodies and what kind of harm a sugar loaded gaseous water can cause to their bodies is laudable.

At the same time it is disappointing to see a section of the student community throughout India opposing Multi National Companies (MNC’S) as a whole and not able to differentiate or understand the benefits from these MNC’s.

Unclear thinking about MNC’s - Examples.

  • All the youngsters want to join and work in companies like Facebook, Google, Amazon, BMW, Accenture, Oracle, Adobe etc. They tend to forget the above mentioned companies are also Multi National Companies.
  • The youngsters want to work in a MNC, improve their social status, earn a good salary and go travel the world but they will speak ill of the same MNC’s. This is ridiculous.
  •  We cannot deny the fact that a bride or groom working abroad is given more preference in the marriage market over people working in India. The youngsters highlight these particular facts of working abroad and on site visit as a huge criteria and sell themselves better.
  • The moment a student receives an offer letter from a reputed MNC, the entire social status of the family rises in the society and the family is happy about it. Here, they raise no qualms about their son and daughters working for and MNC.
  •  If one genuinely feels that a foreign corporate company exploits people, they comfortable forget an Indian corporate company also adopts the same practices.

 Advantages of MNC’s

Employment Generation

  •  As analysts point out, we need as many jobs possible in the coming years or it might turn into a disaster in the future. One potential reason for welcoming MNC’s with both hands would be employment generation. Who else have the ability to create thousands of jobs and run the economy?
  •  In one single stroke, Amazon India by opening a 65,000 sq ft office in a city like Coimbatore creates 600 jobs.

Price Reduction

  •  Whenever there is competition in business, it benefits the consumer. In the case of telecom sector in India, competition became intense after the entry of foreign players like Vodafone, Sistema, and Docomo etc. Call charges have been steadily reducing with the entry of these players. Now, data charges are also dropping with the entry of Jio Network.

Quality of service

  •  There was a time in India where a family waited for years together to receive a landline telephone connection. Now for one small signal issue in broadband connectivity, companies rush to homes to rectify the problem. Customer Service is top notch and the delivery mechanisms have been institutionalised.

Population Dividend

  •  We also need to understand that like how we need MNC’s for our growth, they also need a huge market like India. Our huge population with spending capacity is a lure to them. Our large domestic market is enough to drive our economy. Every MNC want its share of the pie.
  •  Because of the above reason MNC’s indianise their products.

        Eg : Renault through frugal innovation  came out with an exclusive car called Kwid for Indian Market. It was targeted at the Indian middle class segment.

       Mc Donald’s comes out with tikka dishes and KFC with rice menus to satisfy the Indian appetite.

        The point to be noted is Indian consumers carry a variety of choices to improve their quality of life.

 Technology & Innovation

  •  Flipkart co-founders Sachin and Binny Bansal worked in Amazon before starting their own venture. Their stint in MNC’s helps them to understand the technology and gives them an exposure to top class work practices.
  •   Once they were on their own, they innovated according to the local market. The Cash on Delivery is an example. The Consumer is benefited.


In my opinion, the advantages outweigh the disadvantages in having MNC’s.

  •  Strong labour laws protecting the interests of the employees and effective benchmarking of the standards of goods produced by these companies and used by the consumer is the only solution. Total opposition is unnecessary.