Advantages Of Multinationals To Countries Of Their Origin

Advantages Of Multinationals To Countries Of Their Origin: –

1)    Facilitate inflow of foreign exchange: – MNC’s collect funds from the enterprises of other countries in the form of fees, royalty, and service charges. This money is taken to the country of their origin. MNC’s make their home countries rich by facilitating inflow of foreign exchange from other countries.

2)    Promote global co-operations: – MNC’s provide co-operation to poor or developing countries to develop their industries. The countries of their origin participate in such international co-operation, which is beneficial to all countries- rich and poor.

3)    Ensure optimum utilization of resources: –MNC’s ensure optimum utilization of natural and other resources available in their home countries. This is possible due to their worldwide business contacts.

4)    Promote bilateral trade relations: –MNC’s facilitate bilateral trade relations between their home countries and the other countries with which they have business relations.