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Q.

How does it feel to work for foreign M.N.C who drain out assets earned from this country to their homeland without recycling the the profit money in India?

Tags: india, profit money, assets earned
Asked by soumyen sarkar, 13 Dec '09 08:43 am
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Answers (12)

1.

Today is the age of global village and in the global economics the business boundaries are flux. MNC provide growth opportunites and jobs at the local level. Moreso for a country like India which depends on the service economy a lot of the money deposited outside comes back to the country as service jobs. This is the new age of capitalism and its all fair. Of course there do exists pockets of exploitation but those are more so in areas where business interests run riot in sync with political cohorts and dictators.

------ Tune into http://smileinseconds.blogspot.com/ ---------
Answered by Saj Sierra, 13 Dec '09 01:36 pm

 
  
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2.

I do not agree with your view. Who ever invest in a foreign soil will only invest if he has benefits. It is true for every one including Indian entreprenurs. When you succeed in a foreign soil , even if you draw assets to your own country from that country, you certainly will enhance your investment there also. Take the examples of Hyundai motors , maruthi Suzuki and Ford. they have increased their investment more than thrice and are constantly increasing the capital by ploughing fresh capital.It is the same with our own entrepreneurs in Malaysia, Hong kong ,china and african nations.
Answered by Josna, 13 Dec '09 01:12 pm

 
  
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3.

Sai Ram. In these days of international trade, stop thinking of such restrictive boundaries. Our own firms are doing business abroad and bringing the funds into this country. Do you know the extent of foreign exchange reserves that we have now?
Answered by Venkateswaraswamy Swarna, 13 Dec '09 08:46 am

 
  
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4.

Soumyen, I am not against foreign trade but the manner in which it is being done in India is outrageous. U bring in MNC's and u erect SEZ's in order to give your national industry a glimpse as to what a world class competitor looks like, and u use the MNC as a model to coax your national industry into shape and competitiveness. MNC's are also used as a method to bring in new technology into the national industry.

But the purpose of that is lost when the country's national industry is itself folded in favour of MNC. Then u don't have international trade but East India company.

But to be fair to the MNC's it is us who is offering to whore out our nation so cheaply for a few pints of liquidity.

The Chinese have international trade. The USSR had international trade. Communist Yugoslavia had international trade. All those 3 countries had MNC's operating in their borders. In SOviet Union for ex, Murmmansk Tractor factory had partnership w/ Caterpillar USA. But then the Chinese no ...more
Answered by A Moin, 13 Dec '09 11:39 am

 
  
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5.

This is called Neo Colonialism. They are no further interested in ruling a country,there interest is only on assets.
Answered by Santiranjan Pal, 13 Dec '09 06:05 pm

 
  
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6.

We invite M.N.C to invest in India to improve our economy. Before investing deep thought is given in all sectors.
Answered by ANURADHA PATHAKJ, 13 Dec '09 01:51 pm

 
  
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7.

In fact, the profits earned by these MNCs are very much recycled in India and their boks are cleaner than many Indian business houses, meaning that profits are being recycled more transparently. Examples of money recycled includes
1. The money paid through employments in the country of business
2. Interest paid to local banks, from whom they borrow the money
3. Money paid to local suppliers for goods supplied

The foremost importance is generation of employments, which is important for the local population and taxes paid are manifold - 1. From the company itself, 2. from the employees.

The employees in turn spend the money, which helps in boosting up the economy. Thus, money is well-recycled.
Answered by manish varma, 13 Dec '09 10:20 am

 
  
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8.

Same as it would feel for thousands of expat Indians working in Gulf or US or Canada and sending back Foreign exchange back home. In the day of interconnection and interdependancy its better to incraese ties rather than break them.
Answered by Deepak Joshi, 13 Dec '09 08:49 am

 
  
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9.

There are 2 sides to a coin
they do not necessarily drain out
Answered by anil garg, 13 Oct '11 10:16 am

 
  
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10.

Let's not have this idea that people are coming to this country, ploughing in their money as a charity measure that they would so much like to recycle it here for the well being and good of the people of this country. Such thoughts, such ideas and such concepts have long ago taken a beating. Two years back, I had a big show down with one of my country cousins who on his own launched into a tirade against the tyranny of our own IT companies and how this IT company was granted 200 acres of land at concessional rate. He launched himself into a ideological venom spitting spree, which even Mau or Zhou-En-Lai would have envied or even our own home grown pups like Karat or Yechuri.

In now way, could I convince that country cousin of mine that this company the most renowned one in India is going to invest something like 2000 Crores in creating the infrastructure and ancillaries from where they were going to launch operations. Apart from the fact that, once they have taken the lead, others ...more
Answered by Omega, 14 Dec '09 12:05 pm

 
  
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