Thursday, February 14, 2013

Advantages and Disadvantages of Multinational Corporations

Advantages and Disadvantages of Multinational Corporations?

Advantages of MNCs for the server res publica

1. The operation of MNCs will increases the investing level, employment level, and income level of the troops sphere.
2. The industries of host country add up latest technology from outside(prenominal) countries.
3. Gets management expertise from MNCs to the host countrys business
4. The domestic traders and market intermediaries gets increased business in the host country from the operation of MNCs.
5. MNCs curb local monopolies, acquire competition among domestic companies and thus increase their competitiveness.
6. Host country butt end reduce imports and increase exports due to goods produced by MNCs in the host country. This helps to improve balance of payment.
7. The growth of MNCs in the host country will increase level of industrial and economical development.

Advantages of MNCs for the pedestal country

1. . MNCs create chance for marketing the products produced in the hearthstone country throughout the world.
2. They create employment opportunities to the people of alkali 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.

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MNCs also brought profit of foreign culture to home country

Disadvantages of MNCs for the host country

1. MNCs may likely transfer outdated technology in the home country.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 MNCs with monopolising the host countrys market
4. MNCs may non-stop using natural resources of the home country and cause depletion of the resources to make profit.
5. A big amount of cash flows to foreign countries, because of payments towards profits, dividends and royalty.

Disadvantages of MNCs for the home country

1. the home country...If you want to get a full essay, order it on our website: Orderessay



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