Discuss the merits and demerits of global enterprises.

1.	Discuss the merits and demerits of global enterprises.
Answer» The merits of global enterprises are: 1. They help to equalize the cost of factors of production around the world. 2. Through capital investment, multinational companies help to increase the investment level in host countries. 3. Multinational corporations help in the transfer of technology, especially to the developing countries. The demerits of global enterprises are: 1. The technology of multinational corporations is designed for profit maximization, and not for the developmental needs of host countries. 2. Multinational corporations may destroy competition and acquire monopoly powers in host countries. 3. Multinational corporations have been accused of not respecting human rights.

Answer»

The merits of global enterprises are:

1. They help to equalize the cost of factors of production around the world.

2. Through capital investment, multinational companies help to increase the investment level in host countries.

3. Multinational corporations help in the transfer of technology, especially to the developing countries.

The demerits of global enterprises are:

1. The technology of multinational corporations is designed for profit maximization, and not for the developmental needs of host countries.

2. Multinational corporations may destroy competition and acquire monopoly powers in host countries.

3. Multinational corporations have been accused of not respecting human rights.

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