Main advantages of merits of multinational company can be highlighted as follows:
1. Foreign Direct Investment
Multinational companies bring foreign currency in the form of foreign direct investment to the host country. So, it helps to maintain the adequate stock of foreign currency to the developing countries.
2. Employment Opportunity
Multinational companies create large employment opportunities in the host countries. It helps to minimize the unemployment rate of the country.
3. Arrival Of New Technology
Multinational companies bring new skill, latest technology and modern machinery from the home country to the host country in order to operate the business. It helps industrial development of the country.
Multinational companies utilize unused local resources ( like water, land, forest, mines etc.) by using their skills and technology.
5. Increase Government Revenue
These companies pay more tax than local companies. So, multinational companies help to increase government revenue.
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6. Improve Balance Of Payment
Multinational companies help the host countries by promoting exports and decreasing imports. So, it helps to improve balance of payment of the country.
7. Overall Development
MNCs bring capital and technology from home countries, create employment opportunities, improve balance of payment of the host country. So, these companies are very helpful in overall development of the country.
