answersLogoWhite

0


Best Answer

advantages could be:

* training of local labor with more sophisticated techniques which on the long run will bring external benefits to the host country when these techniques can be used in all economic sector. * raise the growth rate of host nation by introducing new investment and new technology. * induce their local rivals to become more innovative and competitive. * promote improvement or development to various supporting industry or complementary industries

* contributions of taxation, plus providing the host country with foreign exchange that can be used to purchase vital imports. the disadvantages are :

* MNC may enjoys high competitive advantages over local firms that can destroy local competition rather than promote it. * they can require their subsidiaries to operate polices that may be inefficient or create distortion in local market

* they may misuse the environment

* they may create uncertainty because foreign firms control the country within it by controlling part of its industries. * they may not promote any development for the nation's economic activities by simply source their components from abroad. which means the tey will drive local producers out of business. * avoid tax by practicing transfer pricing.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

13y ago

Advantages:

  • training of local labor with more sophisticated techniques which, in the long run, will bring external benefits to the host country when these techniques can be used in all economic sector.
  • raise the growth rate of the host nation by introducing new investment and new technology.
  • induce their local rivals to become more innovative and competitive.
  • promote improvement or development to various supporting industry or complementary industries
  • contributions of taxation, plus providing the host country with foreign exchange that can be used to purchase vital imports.

Disadvantages:

  • Multinational companies may enjoy high competitive advantages over local firms that can destroy local competition rather than promote it.
  • they can require their subsidiaries to operate polices that may be inefficient, or create distortion in the local market
  • they may misuse the environment
  • they may create uncertainty; foreign firms control the country within it by controlling part of its industries.
  • they may not promote any development for the nation's economic activities by simply sourcing their components from abroad. The result of this is that they could drive local producers out of business.
  • avoid tax by practicing transfer pricing.
This answer is:
User Avatar

User Avatar

Wiki User

13y ago

advantages could be:

  • training of local labor with more sophisticated techniques which on the long run will bring external benefits to the host country when these techniques can be used in all economic sector.
  • raise the growth rate of host nation by introducing new investment and new technology.
  • induce their local rivals to become more innovative and competitive.
  • promote improvement or development to various supporting industry or complementary industries
  • contributions of taxation, plus providing the host country with foreign exchange that can be used to purchase vital imports.

the disadvantages are :

  • MNC may enjoys high competitive advantages over local firms that can destroy local competition rather than promote it.
  • they can require their subsidiaries to operate polices that may be inefficient or create distortion in local market
  • they may misuse the environment
  • they may create uncertainty because foreign firms control the country within it by controlling part of its industries.
  • they may not promote any development for the nation's economic activities by simply source their components from abroad. which means the tey will drive local producers out of business.
  • avoid tax by practicing transfer pricing.
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are the advantage and disadvantage of multinational company?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What are Dis advantage of multinational?

What are Dis advantage of multinational?" What are Dis advantage of multinational?"


Is Nokia a multinational company?

It is a multinational company. Nokia is the largest multinational corporation in India.


What are the advantage and disadvantage of fidelio?

What are the advantage and disadvantage of fidelio?"


What is Advantage and disadvantage of trade association?

What are the advantage and disadvantage of trade association


Advantage and disadvantage kor host country of mnc?

advamtages of disadvantages of mnc host company


What are the advantage and disadvantage of branch libraries?

what are the advantage and disadvantage branch libraries


What is the advantage and disadvantage of market free?

advantage is its fpree. Disadvantage is that its not fpree.


What are the advantage and disadvantage of sampling techniques?

what are the advantage of and disadvantage of sampling method


Disadvantages of multi national company?

One disadvantage to having a multinational company is the fact that the company is susceptible to changes beyond the business environment. Social unrest and ethical challenges look different in various countries.


What company is a multinational Dutch electronics company based in Amsterdam?

Phillips is a multinational Dutch electronics company.


What is the difference between a disadvantage and an advantage?

Advantage and disadvantage are complete opposites. An advantage is something which is beneficial to an individual. A disadvantage would be not to ones benefit.


Is searle Pakistan a multinational company?

NO. Searle start as the multinational company, but now it is working as a national company