Study Lecture Notes

Menu
  • Computer Science
  • Education
  • Journalism and Mass Communication
  • Management
  • Marketing
  • Political Science
  • Sociology
  • Uncategorized

Advantage Merits of Multinational Corporations MNCs

Importance of Multinational Corporations

The Multinational Corporations have been observed as the instrument of development in the developing states for example National Petroleum Construction Company NPPC has been awarded contract of laying transmission line in Kuwait. Following are the important advantages of MNCs.

Globalization

The first advantage of Multinational Corporations MNCs is that they work for the globalization and went to give global village shape to the whole world. For example, shell works nearly in 132 states of the world that has integrated the Holland, with the host countries because in millions the employees are paid by the shell that simply means that they are the citizen of Holland, because Holland cant not provide here own citizen to all these 132 states of the world.

If shell has been closed million employees will become jobless and due to this billion of families will be affected. Thus it means that from only one MNCs (Shell) billion of people are taking advantages and the same is the case of the other MNCs also.

Increase world dependency

The most important advantage of MNCs is that it increasing the dependency of world countries over each other due to that they become friends of each other.

No war

MNCs also plays very important role in the maintenance of world peace. For example there are a lot of Germany and French MNCs that are working in Germany and French, they will always try to focus on friendly and good relationship and boost their economies.

Integration of world mind

One of the most significant role of Multinational Corporation is unification of world mind and have become successful in this regard. Through out the globe, instead of domestic goods, imported products are used. It means that the MNCs have made the world as a global village.

Mixture of whole world culture

Due to its comprehensiveness throughout the world, different states of the world i.e. their cultures and civilization have become amalgamated with each other. For example British ladies and male like Muslims clothes and their civilization while on the other hand Muslims wants to wear British clothes and caps etc. So we can say that it is all due to the role of MNCs.

Transfer of technology

MNCs also have played and are playing a contributing role in the transfer of highly sophisticated technology from the developed countries of the world to the less developed countries of the world to the less developed countries, especially to third world countries.

Economic growth

In some countries where neither domestic investment nor foreign economic aid is available in sufficient quantities for repaid development, the help of foreign firms, companies and enterprises is sought for capital to speed up the process. Private foreign capital can be major stimulus to the economic growth of under developed countries.

Job opportunities

In countries where unemployment is a major problem foreign corporations or firms provide great opportunities to the local people. Since, it is too expensive to import large number of skilled labours from abroad or from the home country. The foreign investors find it cheaper to train unskilled labours needed by the enterprise.

MNCs produce more and better products

MNCs produce more and better products at lower costs because they establish their plants in those countries where they can draw resources easily.

World modernization

MNCs are regarded as agents of world modernization in the developing countries. They produce new jobs, introduce new technology, and train the local people in the art of science and technology.

MNCs brings foreign exchange

Another most important advantage of MNCs is that it brings foreign exchange to developing countries because in developing countries, the rate of saving is very low.

MNCs take economic risk

Another important advantage of MNCs is that it takes economic risk in business in developing countries because they have financial powers and developing or third world countries are not in such a position to take economic risk.

Reddit
Share
Email
Tweet
Prev Article
Next Article

Related Articles

project_schedule_development.png

Project Schedule Development – How to Plan Time & Sequence of Tasks

Conceptual Problems are Faced in the Estimation of National Income

Conceptual Problems are Faced in the Estimation of National Income

Study Lecture Notes

All in One Solution for your Studies
Copyright © 2025 Study Lecture Notes