what are the advantages and disadvantages of MNC ? With their functions.?
Answers
Taxes and Other Costs – Taxes are one of the areas where every MNC can take advantage. Many countries offer reduced taxes on exports and imports in order to increase their foreign exposure and international trade. Also countries impose lower excise and custom duty which results in high profit margin for MNCs.
Question :- What are the advantages and disadvantages of MNC??
Answer :-
••The advantages of MNC are as follows :-
(a) MNC helps to increase the investment level and there by the income and employment in the host country.
(b) The transnational corporation had become vehicles for the transfer of the technology and especially to the developing countries.
(c) They also bring managerial revolution in the host countries through the professional management and the employment of the highly sophisticated management techniques.
(d) The MNC enable the host countries to increase their exports and decrease their import requirements.
(e) They help increase competition and break domestic monopolies.
••The disadvantage of MNC are as follows :-
(a) They are very powerful and can influence the government of a country.
(b) Local employment can be dependent on one large employer.
(c) They can force the local firms out of business.
(d) They may use up the natural resources which may not be renewable.
(e) The profit they make goes back to the " home"
country.
Question :- what are the functions of MNC??
Answer :- Multi national Cooperation are known as MNCs.
••Their main function is to make foreign direct investment.
•• They also play a vital role in economic development of a country.
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