Demerits of MNCs

DEMERITS OF MNCs

1. Provides out-dated technology.
2. MNCs exploit local labour by paying relatively lesser rates.
3. MNCs involvement often results in the lack of development of local research and development.
4. Use of capital intensive technology reduces jobs in local country.
5. MNCs ruin domestic companies.
6. Adverse effect on life style / culture in host countries.
7. Charge very high fees.

Some of the Indian MNCs: IOC, Ranbaxy, Dr. Reddy, Wipro, Infosys, ONGC, Hindustan Petroleum, Bharat Petroleum. Confederation