what are the advantages of multinational companies
Answers
Answer:
Efficiency. In terms of efficiency, multinational companies are able to reach their target markets more easily because they manufacture in the countries where the target markets are. ...
2. Development. ...
Employment. ...
Innovation.
EXPLANATION
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* One of the main advantages to the host country is that MNCs boost their economic growth. They bring with them huge investments and capital. And then through subsidiaries, joint ventures, branches, factories they promote rapid industrial growth. In fact, MNCs are known as the messengers of progress.
A multinational corporation helps the technological growth of the country as well. They bring new innovations and technological advancements to the host country. They help modernize the industry in developing countries.
MNCs also reduce the host countries dependence on imports. Imports reduce while exports from the country see a rise.
All MNCs have enormous capital and resources at their disposal. A good portion of such resources is invested in R&D. This can be very beneficial to the host countries where they set up their R&D facilities.
Multinational corporations also promote maximum utilization of the country’s resources. This, in turn, leads to economic development.