Question

five advantages and disadvantages for the host country and home country

Answer 1

Answer:

Advantage:

1. The investment level, employment level, and income level of the host country increases due to the operation of MNC’s.

2. The industries of host country get latest technology from foreign countries through MNC’s.

3. The host country’s business also gets management expertise from MNC’s.

4. The domestic traders and market intermediaries of the host country gets increased business from the operation of MNC’s.

Disadvantage:

1. MNC’s may transfer technology which has become outdated in the home country.

2. As MNC’s do not operate within the national autonomy, they may pose a threat to the economic and political sovereignty of host countries.

3. MNC’s may kill the domestic industry by monpolising the host country’s market.

4. In order to make profit, MNC’s may use natural resources of the home country indiscriminately and cause depletion of the resources....