Top-Rated Free Essay
Preview

Multinationals Advantages and Disadvantages.

Satisfactory Essays
286 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Multinationals Advantages and Disadvantages.
Multinational business relies on its imports and exports around the world. Factories may be set up in different areas of the world and have their business based on the import and export of raw materials, which is what is done by most of them. Developing countries can gain more from multinationals since they help increase labor and its opportunities, which then means that the average income of a person will increase allowing them to spend more and lead a better life-style, which helps the tax bases to increase due to people wanting to spend more, often on things they could not afford earlier, and if the tax base increase, the government will be able to supply more for their people and give better health support, better education and help the country to develop more. This could also help in stabilizing the economic system, and increasing the GDP and GNP. International firms that are implanted in developing countries will also help in educating part of the population by teaching the employees the skills required for the job, making it a greater number of educated people. However, multinationals do not always have a good impact on the global business environment, especially in developed countries, as outsourcing to developing countries is happening which causes for jobs to be lost in developed countries and thus, making the average income lower. Also, small businesses do not benefit from this as they are dominated by the multinationals and their brand names. Their impact on our environment is not good, as they produce a lot of waste products, which are not always recycled or used properly, especially in smaller, less developed countries as the laws and restrictions are not always applied.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    TNCs, transnational corporations are large companies that have operations in more then one country. An example of a TNC is Coca Cola. There are many pros to TNCs such as they build infrastructure, bring new technology to the country and provide jobs for local people. But there are also many cons like land degrading, they exploit workers, and they avoid taxes.…

    • 357 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    A multinational company is generally big in size. Some of the multinational companies own and control assets worth billions of dollars. Their annual sales turnover is more than the gross national product of many small countries.…

    • 1617 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Organic farming can be defined by the proactive, ecological management strategies that maintain and enhance soil fertility, prevent soil erosion, promote and enhance biological diversity, and minimize risk to human and animal health and natural resources.…

    • 2073 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    Gap Case

    • 2184 Words
    • 7 Pages

    Presence of MNCs can have many benefits for the host country such as increased employment, availability of products and services, and even improved infrastructure. To elaborate more on the advantages of multinational operations, the most well-known advantage is the ability to tap into low-cost labor markets, which represents one method of cutting production costs. Raw material resources may also be cheaper to extract. Ethical concerns are one of the biggest drawbacks to conducting multinational business. However, major concerns about MNCs are that their economic power can make their host countries dependent. When this occurs, MNCs could start to influence and…

    • 2184 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    Walmart Mnc Report

    • 3279 Words
    • 14 Pages

    Multinational corporations are the driving force of globalization. In a world with fast technological advances and high competition, companies must learn to conduct business outside of their home country to become more efficient. Unfortunately, different cultural practices have made it difficult for even the biggest corporations to be successful in certain countries. The complexity of globalization has shaped many national and international laws. Companies like Walmart and Nike have had to adjust their business models to comply with not only laws but the different cultures in which they do business in. Multinational corporations are praised with increasing consumer choice and increasing product quality while keeping prices low. However, there are critics that argue the negative impacts of globalization.…

    • 3279 Words
    • 14 Pages
    Best Essays
  • Satisfactory Essays

    The role of multinationals in development has never been free from controversy. But the arguments of both the critics and the proponents have gone through significant changes as structural changes in the world economy have occurred and changes in society and governance such as a growing civil society and spread of democracy worldwide have occurred. Equally, it is now clear that, if multinationals are to play a welcoming and beneficial role in the developmental process, they need to re-conceptualize the way they operate in the host countries. If they do so, they will become true friends of the developmental process, and the opponents who charge that they are foes instead will lose political salience.…

    • 290 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Globalization has increased the economic power of the multinational corporations (MNCs), especially in developing countries where MNCs have shaped the economy through foreign direct investment (FDI), knowledge transfer, influence on employment rates and strong competition within the domestic market. Additionally, MNCs have a direct impact on the economic, political, and social landscape of developing countries; their business activities continue to have considerable effect upon human rights and labour standards, both positively and negatively.…

    • 2955 Words
    • 11 Pages
    Best Essays
  • Good Essays

    Multinational Companies are placed all over the world with subsidiaries or joint ventures to gain a competitive advantage over other companies. A multinational company is a company with a global strategy with production bases all over the world to achieve cost advantages through economies of scale and low labour costs. Normally MNCs have a home country which supported the company in the beginning and sometimes these big companies were even built by governments to create a national champion through…

    • 6301 Words
    • 26 Pages
    Good Essays
  • Good Essays

    History of Globalization

    • 730 Words
    • 3 Pages

    Some positives of globalization that are taking place, and have occurred, can be seen in a lot of the world's economies. There are fewer barriers in trade and investments as companies and other various business interests can begin ventures in other countries. Not only can this help the firms themselves, but it could also help the economy and help develop a healthier market. In tandem with this, multinational businesses are one of the major factors in affecting the globalization of the world economy because they have productive activities…

    • 730 Words
    • 3 Pages
    Good Essays
  • Good Essays

    As a benefit, multinational corporations affect what we eat, how we transport ourselves, what our communities look like, and how we take care of ourselves when we get sick. They provide new jobs, pay higher taxes, and produce new or less expensive goods and services. They introduce technology, capital, and skills to their host countries and raise the standard of living. Supporters of multinational corporations explain that they offer a benefit (in the form of jobs) to developing countries. This lessens the need for welfare in developing nations. Further, multinational corporations promote free trade in both developing and developed countries. Finally, supporters of multinational corporations suggest that they have strong moral goals, as shown by their commitment to reduce or eliminate world poverty…

    • 284 Words
    • 2 Pages
    Good Essays
  • Good Essays

    |Joint Venture |Gain immediate access to local partner’s knowledge, |Coordination between partners may not be smooth |…

    • 612 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Couple of years before the policy maker decided to lower down the tariff barriers and to give permission for foreign investment. Multinational companies have started rushing into countries where they wanted to achieve the market position (Arindam K. Bhattacharya and David C. Michael) The entry of multinationals is good for the country as they bring with them newly products, advanced technology, reduce unemployment, and increase in GDP and many more. But it is not as easy as they think to achieve the market position because their entry is threat for the local companies. As local players and competitors started applying their own policies which multinationals cant copy and they keep their market position stable and to fail the multinational companies from achieving the success. But there are some cities where multinationals are successful and that place and cities have become the starting point for commencement of business (Rosabeth Moss kanter).…

    • 3882 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Rajneesh Narula Dept. of International Economics & Management, Copenhagen Business School, Howitzvej 60 2000 Frederiksberg, Denmark e-mail rn.int@cbs.dk Antonello Zanfei Version: 26 November 2003 Forthcoming in, Jan Fagerberg, David Mowery, and Richard R. Nelson (editors), Handbook of Innovation, Oxford University Press 2004.…

    • 14196 Words
    • 57 Pages
    Powerful Essays
  • Powerful Essays

    1.About Porsche AG ...................................................................................................................... 4 2.Porsche’s Growing Portfolio ....................................................................................................... 5 3.The Most Profitable Automobile Company in the World ............................................................. 8…

    • 10732 Words
    • 43 Pages
    Powerful Essays
  • Good Essays

    The entrance of such multinationals posses various impacts.A country like ours has been facing a huge difference between number of exports of goods and services and their imports.So, the establishment of such large multinational firms could help in the balance of payment(B.O.P).And also these companies generate huge employment oppotunities,which on the one hand ,solves the brain drain problem and on the other hand,provide jobs to those involved in agriculture in limp periods,making the population more skillful and increasing their efficiency and quality.…

    • 651 Words
    • 3 Pages
    Good Essays