What are the merits and demerits of multinational corporations?

Answer 1

Merits:

1. MNCs also stimulate domestic enterprise because to support their own op-rations, the MNCs may encourage and assist domestic suppliers.
2. MNCs help increase competition and break domestic monopolies
3. the MNCs enable the host countries to increase their exports and decrease their import requirements.
4. they work to equalize the cost of factors o productions around the world #provide efficient means of integrating national economies
5. help to increase the investment level and thereby the income and employment in the host country vehicles for the transfer of technology for developing countries

Demerits:

1. retard the growth of employment in home country
2. transfer pricing help mnc to avoid taxes by manipulating prices on intra-company transactions
3. destroy competition and acquire monopoly powers

Answer 2

Merits: Multinational corporations can bring employment opportunities, technological advancements, and economic growth to a country. They can also facilitate the transfer of skills and knowledge across borders.

Demerits: Multinational corporations may exploit cheap labor in developing countries, contribute to environmental degradation, and have significant political influence that can undermine local governments. They may also engage in profit-shifting to avoid taxes, affecting the host country's revenue.