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advantages and disadvantages of MNC'S .


Posted- 2101 days ago
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MNC'S HAVE MORE ADVANTAGES THAN DISADVANTAGES

FIRST THE ADVANTAGES OF MNC'S ARE:

1.THE HELP IN THE DEVELOPMENT OF THE COUNTRY BECAUSE MNC'S SETTLE MAINLY IN DEVELOPING COUNTRIES TO GET CHEAP LABOUR AND RESOURCES

2.THE COUNTRY MEN ARE ABLE TO GET A LOT OF PROFIT BECAUSE MNC'S GET FACILITIES LIKE EMPLOYMENT

DISADVANTAGES OF MNC'S ARE

1.THEY EARN A LOT OF PROFIT DETERIORATING THE COUNTRY'S SMALL SELF EMPLOYED BUISSNESSMEN,DETERIORATING THE RESOURCES AND TAKING UNDUE ADVANTAGES OF CHEAP LABOUR

 
Best Answer

Advantages :-

Availability of capital and foreign investments.

Availability of foreign exchange.

Promotion of small scale industries .

Foreign trade & integration of markets

 

Disadvantages:-

Harmful for host country

Harmful for the local producers.

Harmful for freedom.

Harmful for economic equality.

 
Best Answer

Advantages :-

Availability of capital and foreign investments.

Availability of foreign exchange.

Promotion of small scale industries .

Foreign trade & integration of markets

 

Disadvantages:-

Harmful for host country

Harmful for the local producers.

Harmful for freedom.

Harmful for economic equality.

 
Best Answer

MNC'S HAVE MORE ADVANTAGES THAN DISADVANTAGES

FIRST THE ADVANTAGES OF MNC'S ARE:

1.THE HELP IN THE DEVELOPMENT OF THE COUNTRY BECAUSE MNC'S SETTLE MAINLY IN DEVELOPING COUNTRIES TO GET CHEAP LABOUR AND RESOURCES

2.THE COUNTRY MEN ARE ABLE TO GET A LOT OF PROFIT BECAUSE MNC'S GET FACILITIES LIKE EMPLOYMENT

DISADVANTAGES OF MNC'S ARE

1.THEY EARN A LOT OF PROFIT DETERIORATING THE COUNTRY'S SMALL SELF EMPLOYED BUISSNESSMEN,DETERIORATING THE RESOURCES AND TAKING UNDUE ADVANTAGES OF CHEAP LABOUR

 
Best Answer

Advantages :-

Availability of capital and foreign investments.

Availability of foreign exchange.

Promotion of small scale industries .

Foreign trade & integration of markets

 

Disadvantages:-

Harmful for host country

Harmful for the local producers.

Harmful for freedom.

Harmful for economic equality.

 
Best Answer

adv: many people get jobs

dis: they do not get paid satisfactorily.

 
advantages- 1. MNC's helps in the transfer of technology, especially to the developing countries. 2. they help in the better utilisation of resources available in host countries. 3. home country can acquire raw materials from abroad at lower price. 4. home country can acquire technology from other country. disadvantages- 1. harmful for host countries. 2. harmful for local producers. 3. harmful for freedom. 4. harmful for economic equality.
 
Disadvantages of Multinational Company (1) High Profit Low Risk Investment: The multinational company prefer to invest in areas of low risk and high profitability. Issue like social welfare, national priority etc. have less priority on their agenda. Mostly they invest in consumer goods industry. (2) Interference in Political Matters:The multinational company from developed countries interfere in the political affairs of developing nations. There are many cases where multinational company has bribed political leadership for their own economic gains. (3) Create Artificial Demand: These companies create artificial and unwarranted demand by making extensive use of advertising and ales and promotion techniques. (4) Exploitation: These companies are financially very strong and adopt aggressive marketing strategies to sale their products, adopt all means to eliminate competition and create monopoly. (5) Technological Problem: Technology they use is capital intensive so sometimes that technology does not fully fit in the needs of developing countries. Also, multinational company is criticized for transferring outdated technology to developing countries. (6) Foreign Exchange go outside the Country: The working of multinational company is a burden on the limited resources of developing countries. They charge high price in the form of commission and royalty paid by local business subsidiary to its parent company. This leads to outflow of foreign exchange.