Abstract: In the age of the concepts of global market and economy, transnational or multinational corporations are adopting different strategies to exploit different advantages, such as location, resourcesand markets. As these corporations are considered, among others, as the driving forces of globalization, it is also worthwhile to know about the competitive factors that influence outcome of negotiation of different situations. This article attempts to evaluate these factors taking three components, namely, India as a host country, PepsiCo and Coca Cola as the transnational corporations. At the end it has been found that host country is somehow bound to invite foreign direct investment to cope with the new world economic environment whereas the transnational corporations are also ready to trade-off by providing some concessions but not at the costs of their trade-secrets.