What are the advantages and disadvantages of multinational companies to the host country?

Answer 1

The advantage of multinational companies to the host country is the sharing of knowledge and technology with the host country. The disadvantage is that they provide costly services to the local consumers.

Answer 2

The advantages and disadvantages are pretty much the same, only the perspective changes. For example:

A company that manufactures things in multiple countries is able to capitalize on the cheaper sources of materials, labor, distribution, etc and in turn sell a cheaper product at a higher profit margin. However, if you happen to live in the country with higher costs, you're going to lose out.

One modern example of this is out-sourcing of manufacture from the U.S.

It is cheaper to procure materials from China, manufacture in Mexico and then sell in the US where people have more money (generally speaking). In this scenario, Americans spend money but only employees in Mexico and China actually make money.

This causes the loss of American jobs on the production side but still takes adavantage of American economic policies to maximize profit. Great for the consumer (lower prices), great for the laborers (more money than native companies), great for the company (higher profits) but bad for American workers.

Of course this is true of all transnational companies. If you're based out of Korea, but Tawainesse labor's cheaper, of course you're going to limit how many Koreans you have to higher.

Answer 3

Advantages:-It provides a wider choice of products for the consumers.

-MNC's usually produce well branded products, so consumers standard of living ill increase.

-They will provide job opportunities for the local citizens.

Disadvantages:-The profit is takeout of the country.

-They exploit Natural Resources

-Local producers are discouraged because they cant compete with large MNCs'.

Answer 4

Some benefits of having multinational corporations include the fact that they can offer more competitive prices to consumers. A disadvantage is that they tend to exploit low wages in countries that can use the money.

Answer 5

Advantages and disadvantages of international companies?