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.
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.
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'.
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.
Advantages and disadvantages of international companies?
Multinational companies have investment in other countries, but do not have coordinated product offerings in each country. More focused on adapting their products and service to each individual local market.Transnational companies are much more complex organizations. They have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market.
One of the merits of multinational companies is that they earn a lot of revenue and help the economy in the country where they are based. A problem with these companies is that they oftentimes outsource labor, which results in layoffs and unemployment .
Multinational companies play an important economic role in developing countries. One example is the ability of multinational companies to fill a country's trade gap by providing an influx of foreign capital.
A positive for the host country of a multinational company is that it provides jobs for the citizens of the host country and usually contributes to the growth of the economy. One of the negatives is that some multinational companies pay such low wages they are known around the world as sweatshops.
There are many problems faced by multinational companies in host countries. The main problem is the huge cost of labor in the host country so as to be able to coordinate the other branches in other countries.
what are the advantages and disadvantages to multinational companies by investing in A HOST COUNTRY?
hey!!
Multinational companies have investment in other countries, but do not have coordinated product offerings in each country. More focused on adapting their products and service to each individual local market.Transnational companies are much more complex organizations. They have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market.
Too long to list here there is a list of multinational companies in almost every country, visit (paid and commercial) businessmonitor.com/companies
The main differences between national and multinational companies are: Multinational companies do foreign investment; in contrast, national companies do not. Moreover, multinational companies can control the production in more than one region or country, but the national company does not control any other country.
Multinational companies are terminated in various ways depending on the country. Executive managers must follow a predetermined way of dissolving the company.
The advantages of nationalism are that they give the government control over the country's Natural Resources, instead of giving it to foreign companies. The disadvantage is that it stifles competition.
Multinational company has to establish the base in different country, aswell they have to assist their branch companies, large manpower is required. So!
One of the merits of multinational companies is that they earn a lot of revenue and help the economy in the country where they are based. A problem with these companies is that they oftentimes outsource labor, which results in layoffs and unemployment .
Multinational companies play an important economic role in developing countries. One example is the ability of multinational companies to fill a country's trade gap by providing an influx of foreign capital.
A positive for the host country of a multinational company is that it provides jobs for the citizens of the host country and usually contributes to the growth of the economy. One of the negatives is that some multinational companies pay such low wages they are known around the world as sweatshops.
Multinational companies can often influence a country's culture and economy. They introduce new products and value systems, not only for the consumers, but also for any local employees they hire.