Merits of Multinational Corporations


Merits of Multinational Corporations:


  1. Change and progress: MNCs are said to be the agents of change and progress, on world wide.
  2. Enables maximum use of resources.
  3. To the host countries, the plants, equipments, and technical know how necessary for its operations which is not available otherwise is made available through MNCs.
  4. MNCs create employment opportunities in the host countries. Local recruitment of Junior Managers creates a pool of managerial talent in the host country.
  5. Goods are made available at cheaper price due to economies of scale.
  6. MNCs contribute enormously to technology transfer between rich and poor countries.
  7. MNCs stimulate domestic employment.
  8. Helps removal of monopoly and improve the quality of domestic made products.
  9. Promotes exports and reduce imports by raising domestic productions.

10. Provides benefits of R & D.

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