The merits of a Multinational company may be stated as follows: 

(i) Research and development activities: Multinational corporations have greater capability for research and development activities in comparison to national companies. Multinationals survive in the international market through their advanced research and development activities.

(ii) Foreign capital: Multinationals have huge capital resources at their command. They provide foreign investment by setting up subsidiaries and joint ventures in host countries. They promote capital formation and ensure a sound choice of projects. They have access to external capital markets.

(iii) Lower cost of production: Multinational corporations carry on operations on a large-scale, which ensures economies in material, labour and overhead costs. The lower cost of production has benefitted the consumers since they get better quality goods at cheaper prices.

(iv) Professional managers: Multinationals employ highly sophisticated techniques of management and develop professional managers. These corporations help to increase specialisation, speed up decision-making and improve operational efficiency. They shape the composition and character of world markets.