They allow for a wider market. Inward investment by multinationals creates much needed foreign currency for developing economies. They can help a country in many ways. Loss of Jobs With more companies transferring offices and centering operations in other countries, jobs for the people living in developed countries are threatened.
List of Disadvantages of Multinational Corporations 1.
List of Cons of Multinational Corporations 1. The jobs given to the locals of the host country should be the jobs enjoyed by the people where the head office is located.
If not, then a lot of harm may happen instead. Through merger and acquisition, multinational companies can help other commercial organizations with achieving economies of scale in distribution and marketing, allowing well-managed businesses to take over those that are poorly managed. Multinational corporations have the ability to bring advanced technology to poorer countries, while bringing low-cost products to the wealthier ones.
The size of the business helps to save consumers money. They often abuse the environment and are typically not very careful when using their resources.
But all that said, multinational corporations have provided much benefit for the countries they operate in. There is always security when you know what you can expect for. What do you think of Multinational companies? Everything else comes second.
If a business can be ethically responsible and have a multinational presence, then a lot of good can be accomplished for the world today. Only large firms can undertake it with significant resources and profit.
For example, oil exploration is costly and risky; this could only be undertaken by a large firm with significant profit and resources. This exchange of wealth can lead to the creation of more jobs and help to further develop local and regional economies.List of Disadvantages of Multinational Corporations.
1. Potential Abuse of Workers Multinational companies often invest in developing countries where they can take advantage of cheaper labor. Key term: Multinational Company-a company that has operations all over the worldAdvantadges of MNC's: Cheaper labour costs- imortant since wages are a large part of production cost; Gaining a strong foothold in international markets- linked with the need to gain economies of scale to remain competitive.
Pros and Cons of Multinational Companies - Free download as Word Doc .doc), PDF File .pdf), Text File .txt) or read online for free. Scribd is the world's largest social reading and publishing site.5/5(1). So, are multinational corporations really good for both the country of origin and the country of operation?
Let us take a closer look at their pros and cons. List of Pros of Multinational Corporations.
1. Their size benefits consumers. Pros and cons of going international When thinking about internationalization, a lot of people instantly associate it with multinational companies.
It cannot be said that they are wrong; however, internationalization is a far more complex phenomena as it does not only consist of companies setting their headquarters outside the borderlines of.
India's love-hate relationship with multi-national corporations (MNCs) is more complicated than simple fear of big, faceless companies.
MNCs bring jobs (but also "hire-and-fire" policies), consumer choice (that push traditional foods out of the market), and brand-name products (which is feared to .Download