Question

Explain any three disadvantage of MNCs .
please don't copy from internet. answer in own words​

Answer 1

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Explain any three disadvantage of MNCs .

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Environmental cost :-

• multinational companies can outsource parts of production process to developing economies with weaker environmental legislation
• for ex :- there is a trade in rubbish ,which gets sent to developing economies like India for disposal and recycling

Raw material :-

• A large component of multinational investment in developing economies is seeking out raw material -,oil,diamonds,rubber etc

Harmful for local producer:-

• most of the local trader have failed to compete with MNCs .so,either they have sold their units to MNCs or have been wiped off

Harmful for the host country:-

• The main objective of MNCs is to earn maximum profit .
• They over exploit the natural resources of host country

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