Advantages and Disadvantages of Multinational Corporation


Advantages of Multinational Corporation

  • The Multinational Corporation provide the latest technology to the developing country. They help them to teach up to date technology.
  • Multinational Corporation helps the developing country to provide them Foreign Capital. Because when the business starts the foreign capital will bring to the host country and upgrade the economic conditions of the country.
  • Multinational Corporation brings Employment opportunities to the host country. Because when the company settles their plans they need skilled people to lower qualified people. So, The multinational corporation brings the high number of employment.
  • The Home country also gets talented people at a low rate.
  • The Multinational Corporations income for their home country in another country.

Disadvantages of Multinational Corporation

  • Sometimes the Multinational Corporations disregard of national goals. They just invest the money in a sector and provide some jobs, they could not be able to remove the unemployment to the country.
  • Multinational Corporations has big bargaining power. they influence the decisions of the government.
  • Multinational Corporations set their plants in a developing country because they need cheap labor. They do not provide skills to the developing country people. They just made them the machine.
  • Multinational Corporations give lots of work to the host country people. Because they want to produce high-quality products at the cheapest rates. They don’t focus on the Research & Development of the country.
  • The Multinational Corporations may cause fast depletion of some of the non-renewable natural resources in the host country.