FDI: Multinational corporations

FDI: Multinational corporations



Multinational company is a company whose main office is in one country, but it works in many countries. Most of the multinational companies have headquarters in America, European Union, Japan, and many such rich countries. In the last few years, even in the third world countries, multinational companies have emerged.


At the beginning of 2006, the government had allowed 51 percent foreign direct investment (FDI) in single brand retail (ie Nokia, Gussi, Reebok etc.). It has been increased to 100 percent and multi-branded 51 percent FDI. The last 20 years of Wal-Mart, Tesco, have finally got success in opening up the Indian grocery market.


Multi-brand retailing companies in the Retailing sector (for example - Walmart, Sears Roboq, Carrefour, Tesco etc.) can open a big market like mall in India. But they have to take them to a local partner in India. In such a joint venture, foreign companies will sell 51% of the capital. Indian partner will invest 49% of the capital.


Wal-Mart is the world's largest global supply office in 20 years in Bangalore. It is a work from this office that works from India and Sri Lankan producers to buy various products from towel-tabletop to ornaments and to deliver to Wal-Mart's shops all over the world. In India, with Wal-Mart Mittal's Bharti Enterprises, Bharti-Wal-Mart Private Limited joint venture Joint Venture's 'Best Price' name has 9 major malls.


Wal-Mart has provided technical support to Bharti Retail, so that in the state of Delhi, Uttar Pradesh, Punjab, Haryana, Madhya Pradesh and Uttarakhand, 139 supermarkets of Bharti Retail are in operation since April 2008. Wal-Mart is a chain of grocery stores or shops that came into existence in 1962 with Sam Walton's concept and experience. Thousands of products from ordinary shops and cars are available under a single roof and at an affordable price or on larger discounts. The concept of One Stop Shop is huge for customers all over the world, and Wal-Mart's spread spreads worldwide in a short span of time. Today 15 countries have Wal-Mart stores since 2000, in that area the economy has changed to Wal-Mart.
FDI: Multinational corporations FDI: Multinational corporations Reviewed by S Current Affairs on December 10, 2018 Rating: 5
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