Advantages and Disadvantages of Multinational Corporations Essay

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Advantages and Disadvantages of Multinational Corporations?

Advantages of MNC's for the host country

  1. The operation of MNC’s will increases the investment level, employment level, and income level of the host country.
  2. The industries of host country get latest technology from foreign countries.
  3. Gets management expertise from MNC's to the host country's business
  4. The domestic traders and market intermediaries gets increased business in the host country from the operation of MNC's.
  5. MNC's curb local monopolies, create competition among domestic companies and thus increase their competitiveness.
  6. Host country can reduce imports and increase exports due to goods produced by MNC's in the host country. This helps to improve balance of payment.
  7. The growth of MNC's in the host country will increase level of industrial and economic development.

Advantages of MNC's for the home country

  1. . MNC's create chance for marketing the products produced in the home country throughout the world.
  2. They create employment opportunities to the people of home country both at home and abroad.
  3. enhance to the industrial activities of home country.
  4. preserve   favourable balance of payment of the home country in the Long-term operation.
  5. MNC's also brought profit of foreign culture to home country

Disadvantages of MNC's for the host country

  1. MNC’s may possible transfer outdated technology in the home country.
  2. It can be a threaten to the economic and political sovereignty of host countries.
  3. the domestic industry may kill by MNC's with monopolising the host country's market
  4.   MNC's may non-stop using natural resources of the home country and cause depletion of the resources to make profit.
  5. A big amount of money flows to foreign countries, because of payments towards profits, dividends and royalty.

Disadvantages of MNC's for the home country

  1. the home country...

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Advantages and Disadvantages of Multinational Corporations. Anti Essays. Retrieved April 24, 2014, from the World Wide Web: http://www.antiessays.com/free-essays/Advantages-And-Disadvantages-Of-Multinational-Corporations-278974.html