Merits of MNC's......
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Answers
Multinational businesses and non-profit organizations have numerous advantages. In some instances, the advantages are excellent for the business and the regions in which they operate. In others, the multinational arguably has an unfair advantage and over local businesses and have a net negative impact.
Answer:
The merits of MNCs are as follows:
1. Economic Development
The Developing countries need both foreign capital and technology to make use of available resources for economic and industrial growth. MNCs can provide the required financial, technical and other resources to needy countries in exchange for economic gains.
2. Technology Gap
MNCs are the instruments of transfer of technology to the host country. Technology is necessary to bring down cost of production and produce quality goods on a large scale. The services of MNCs can be of great help to bridge the technological gab between developed and developing countries.
3. Industrial Growth
MNCs are dynamic and offer growth opportunities for domestic industries. MNCs assist local producers to enter the global markets through their well established international network of production and marketing. And there by ensure industrial growth.
4. Marketing Opportunities
MNCs have access to many markets in different countries. They have the necessary skills and expertise to market products at international level. For example, an Indian Company can enter into Joint Venture with a foreign company to sell its product in the international market.
5. Work Culture
MNCs introduces a work culture of excellence, professionalism and fairness in deals. The sole objective of Multinational is profit maximisation. To achieve this, the Multinationals use various strategies like product innovation, technology up gradation, professional management etc.
6. Export Promotion
MNCs assist developing countries in earnings foreign exchange. This can be done by promoting and developing export oriented and import substitute industries.6. Export Promotion: - MNCs assist developing countries in earnings foreign exchange. This can be done by promoting and developing export oriented and import substitute industries.
7. Research and Development
The resources and experience of MNCs in the field of research enables the host country to establish efficient research and development system. It is a fact that many MNCs are now shifting their research units to countries like India to avail of monetary incentives and cheap labour.