Multinational corporations are mixed blessing to the development countries. comment on this ststement?
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Indeed it is because of the fact it has its advantages and also its own disadvantages.Hence its advantages are;
1)Wide variety of goods available;there is introduction of variety of goods and services in domestic market that is provided in foreign markets.
2)Employing new technologies;it brings along the new technology and innovation with them in markets of the developing countries which adds into the development of domestic industry.
3)Improvement infrastructure;there is improvement of infrastructure due to the introduction of new technology in the country.Hence,adds a benefit unto the developing countries.
4)Better employment opportunities;it increase market operation hence boosting the employment in the nation.
-Disadvantages of multinational corporation:
1)Outflow of funds to protect multinational cooperation;the government in order to protect the multinational cooperation for foreign investments directs huge amounts of funds to them.
2)Increasing domestic competition;by influencing the market,it has increase the level of competition among the domestic industries and thereby damages the domestic market.
3)Environment degradation;it leads to depletion of natural resources as multinational cooperation use the natural resources .
4)Exploitation of cheap labour;this mainly occurs due to low wage rates.
1)Wide variety of goods available;there is introduction of variety of goods and services in domestic market that is provided in foreign markets.
2)Employing new technologies;it brings along the new technology and innovation with them in markets of the developing countries which adds into the development of domestic industry.
3)Improvement infrastructure;there is improvement of infrastructure due to the introduction of new technology in the country.Hence,adds a benefit unto the developing countries.
4)Better employment opportunities;it increase market operation hence boosting the employment in the nation.
-Disadvantages of multinational corporation:
1)Outflow of funds to protect multinational cooperation;the government in order to protect the multinational cooperation for foreign investments directs huge amounts of funds to them.
2)Increasing domestic competition;by influencing the market,it has increase the level of competition among the domestic industries and thereby damages the domestic market.
3)Environment degradation;it leads to depletion of natural resources as multinational cooperation use the natural resources .
4)Exploitation of cheap labour;this mainly occurs due to low wage rates.
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