Advantages Of Multinational Company

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.
advantages multinational company
4. Resource Utilization

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.