Merits of MNCs

Merits of MNCs

1.      Economic Development: MNC’s are required in developing and under-develop nations for economic development. MNC’s with their large capital and labour resources set their operations in such countries, which leads to expansion of economy and lead to the economic growth of such nations. In-fact there culture, work style, skill are there attitude changes the pattern of host nations and increases the productivity.

2.      Industrial Growth: MNC’s with their professional approach, offer growth potential to domestic industry. They directly provide support to many other ancillary companies as well. Many MNC’s have grown many nations and its industries. There professional approach helps the people of the host nation to gain from the experience of MNC’s.

3.      Research and Development: Vast resources, allow such companies to invest heavily on research and development. Research and development leads to innovation and invention which are good for the overall advancement of the world. Many multinational corporation are shifting their research base to countries like India – which offers cheap labour.

4.      Technology: Products produced and marketed by MNC’s are technically far superior than the other companies. Such companies reduce the technological gap between the nation of the world. .Technology not only improves the quality, it also reduces the cost, reduces wastage, saves time and resources to top it all.

5.      Employment and standard of living: MNC’s provide employment to the people in the country of operation. They also indirectly allow the ancillary companies to develop which also provides the employment to thousands of people. Employment improves the standard of living of the people in the host nation.

6.      Competitive spirit: Research has shown MNC’s brings competitive spirit among the domestic industries as well, which is good for the people as they can enjoy far better choice and better quality. When India opened up in 1991, to foreign companies, even the productivity of the home companies improved.