What are the Weakness of multinational companies?

Answer 1

The strengths of MNC (Multinational Corporation) 1. Having the scale economies in buying raw materials around the world at better prices then the competitor one, its knowledge of the source of supplies in the key areas. 2. The MNC can move the supply of its human resources to wherever they are needed from its experts, technicians, and employees who are knowledgeable in the foreign culture, languages and management traditions 3. The large scale economies in advertising, marketing, finance, banking, means efficiency in business management, administration and direction. The weaknesses of MNC 1. It's large size can be a problem because of the cost, the ways of doing business, the scope of enterprise can be out of control 2. It tends to problems of change, adaptability as it is not able to adapt to changes in the product, markets, technologies in time 3. The entrenchment to the old ideas, ways, styles, cultures tend to produce inefficiency, outmoded style, technologies resulting in failure of the MNC in many areas and countries.