What Is Benefit And Limitation Of Multinational Companies?


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Lady Indigo answered

  • Multinational companies are organizations which has its operations in different countires, this can be in terms of sales outlets, branches, offices etc. A good example of multinational company can be Mac Donald, Pepsi, Cocacola etc.

        Benefits of multinational Company
  • Multinational companies create more job opportunities to the host country in which it operates.

  • They may bring in new and advanced production and managerial skills to the host country.

  • Now there would be a wider choice of goods and services available to the consumers of the host country with the establishment of multinational companies sales outlets.
          limitations of Multinational Company
  • Exploitation of resources

  • Profits are returned back into the home country of the multinational company, meaning that, the host country cannot enjoy any profit of the multinational outlet.

  • Sometimes they may work against the interest of the home country, like against their cultural and religious faith and belief.

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