There are two main reasons why a firm will build a facility in Another Country:
1) They want to have a manufacturing facility closer to one of their larger markets.
2) They can manufacture their products more cheaply overseas due to cheaper labour costs.
Because it's cheaper for the factory owner, they can employee workers in developing countries dirt cheap
Multinational corporations have their manufacturing plants in developing countries because of low labor costs.
Yes
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.
Exploitation of resources of third world countries.
D. by requiring the multinational to export a certain percentage of its productE2020 :)
P: More jobs are created. Higher salaries. More advanced technology is brought to the country. N: National products are produced less. Multinational corporations may take advantage of the country's conditions to pay less to employees or give them less benefits, insurances...
Yes
What are the advantages of multinational companies to the developing countries?
Nationalist organizations and multinational corporations
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.
It is a corporation/business entity/enterprise that manages production establishments or delivers services in at least two countries. There are three types of MNCs. They are: Horizontally integrated multinational corporations. Vertically integrated multinational corporations. Diversified multinational corporations.
Multinational corporations have made it possible for goods and services to be provided across the borders. They are important in stabilizing the economies of various countries.
Exploitation of resources of third world countries.
Transnational corporations are companies (such as mcdonalds) that have branches all over the world. They differ from Multinational Corporations as they are in more countries.
D. By requiring the multinational to export a certain percentage of its product.
D. by requiring the multinational to export a certain percentage of its productE2020 :)
P: More jobs are created. Higher salaries. More advanced technology is brought to the country. N: National products are produced less. Multinational corporations may take advantage of the country's conditions to pay less to employees or give them less benefits, insurances...
multinational corporation, business enterprise with manufacturing, sales, or service subsidiaries in one or more foreign countries, also known as a transnational or international corporation. These corporations originated early in the 20th cent. and proliferated after World War II. Typically, a multinational corporation develops new products in its native country and manufactures them abroad, often in Third World nations, thus gaining trade advantages and economies of labor and materials. Almost all the largest multinational firms are American, Japanese, or West European. Such corporations have had worldwide influence-over other business entities and even over governments, many of which have imposed controls on them. During the last two decades of the 20th cent. many smaller corporations also became multinational, some of them in developing nations. Proponents of such enterprises maintain that they create employment, create wealth, and improve technology in countries that are in dire need of such development. Critics, however, point to their inordinate political influence, their exploitation of developing nations, and the loss of jobs that results in the corporations' home countries.