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What are the advantages and disadvantages of MNC\'s |
| Answer» Advantages of MNCs- developing countries\tThe industries of developed country get\xa0latest technology from foreign countries through MNC\'s.\t\xa0The\xa0investment level, employment level, and income level\xa0of the developing country increases due to the operation of MNC\'s.\t\xa0They can\xa0reduce imports and increase exports\xa0due to goods produced by MNC\'s- balance of payment.\t\xa0Greater availability of\xa0products for local consumers\t\xa0MNC\'s break\xa0protectionalism, curb local monopolies, create competition\xa0among domestic companies- enhance their competitiveness.Advantages of MNCs- developed countries\t\xa0MNC\'s create\xa0opportunities for marketing the products\xa0produced in the developed country throughout the world.\t\xa0They create\xa0employment opportunities\xa0to the people both at home and abroad.\t\xa0It gives a boost to the\xa0industrial activities\xa0of developed country.\t\xa0MNC\'s help to maintain\xa0favourable balance of payment\xa0in the long run.\tThey can also get the\xa0benefit of foreign culture\xa0brought by MNC\'s.\tThey get benefit from several research and development activities.Disadvantages of MNCs\tForeign investors created regional disparities\tSlow down in the employment in home countries\tDestroy competition and acquire monopoly\tIndians spend their money on a variety of global brand sin market\tQualified persons are posted abroad in their foreign subsidiaries\t\xa0Large sum of foreign exchange flows out of the country\t\xa0Trade restrictions imposed at the government level\t\xa0Limited quantities (quotas) of imports\t\xa0Effective management of a globally dispersed organisation | |