Business Studies

Which of the following is/are advantage of MNC's?


ANSWER

All of the above


SOLUTION


  • Access to Consumers – Access to consumers is one of the primary advantages that the MNCs enjoy over companies with operations limited to the smaller region. Increasing accessibility to wider geographical regions allows the MNCs to have a larger pool of potential customers and help them in expanding, growing at a faster pace as compared to others.
  • Accesses to Labor – MNCs enjoy access to cheap labor, which is a great advantage over other companies. Taxes and Other Costs – Taxes are one of the areas where every MNC can take advantage. Many countries offer reduced taxes on exports and imports in order to increase their foreign exposure and international trade. 
  • Overall Development – The investment level, employment level, and income level of the country increases due to the operation of MNC’s. Level of industrial and economic development increases due to the growth of MNCs.
  • Technology – The industry gets the latest technology from foreign countries through MNCs which help them improve on their technological parameter.
  •  R&D – MNCs help in improving the R&D for the economy.
  • Exports & Imports – MNC operations also help in improving the Balance of payment. This can be achieved by the increase in exports and a decrease in the imports.
  • MNCs help in breaking protectionism and also helps in curbing local monopolies, if at all it exists in the country.
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