Multinational Corporations Advantages & Disavantages
Advantages of Multinational Corporations
1. Cost Control
Lower Labor Cost
Reduced Transportation Fees
2. Taxation
Located in low tax country
Benefit from tax system
3. Customer Benefits
Increased profits, reduced prices
Knowledge + resources from other countries = better products
4. Benefits to Countries
Increase in tax revenues
Increase in employment
Attract people with higher paying wages
Disadvantages of Multinational Corporations
1. Market Dominance
Harder for smaller, local firms to survive.
2. Influence over Culture & Politics
Cultures may disapprove of what Multinational Corporation bring to their countries.
How they influence politics & traditions.
3. National & Environmental Threats
Outdated technology hamper quality & price
May create more pollution, erosion, and deforestation.
