What are the merits and demerits of multinational corporations?

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1266988

2026-04-05 16:05

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Merits:

  1. MNCs also stimulate domestic enterprise because to support their own op-rations, the MNCs may encourage and assist domestic suppliers.
  2. MNCs help increase competition and break domestic monopolies
  3. the MNCs enable the host countries to increase their exports and decrease their import requirements.
  4. they work to equalize the cost of factors o productions around the world #provide efficient means of integrating national economies
  5. help to increase the investment level and thereby the income and employment in the host country vehicles for the transfer of technology for developing countries

Demerits:

  1. retard the growth of employment in home country
  2. transfer pricing help mnc to avoid taxes by manipulating prices on intra-company transactions
  3. destroy competition and acquire monopoly powers

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