(i) MNCs are profit driven and are less concerned for the development of the host country. (ii) The technology used are capital intensive and expensive which are not suitable to a developing country. (iii) In some instances, labour laws are not properly implemented and the workers do not get their rights.
What are the harmful effect of MNC to host country?
The harmful impacts of MNCs to a host country are: They can hamper the growth of local industries by giving them tough competition. They generally use capital intensive techniques which may not be suitable for a developing country like India where unemployment is a big problem.
What are MNCs give three examples?
LTI, TCS, Tech Mahindra, Deloitte, Capgemini are some of the examples of MNCs in India.
What are some of the major effects of MNCs on home and host states?
MNC’s and their effect on both domestic and host countries
- Increase market share.
- secure cheaper labor and land.
- employment, regulations, safety, pollution, and government are more relaxed.
- minimize/completely avoid tax payments.
- take advantage of government grants.
- save on transportation costs.
- avoid trade barriers.
What are the effects of MNC?
When multinational corporations invest in a country they create employment opportunities. They account for increased incomes and expenditures in the economy of the host country stimulating growth. Workers also benefit from technology transfer as new machinery is imported into the host country.
What are the advantages and disadvantages of MNC?
List of the Advantages of Multinational Corporations
- Multinational corporations provide an inflow of capital. …
- Multinational corporations reduce government aid dependencies in the developing world. …
- Multinational corporations allow countries to purchase imports. …
- Multinational corporations provide local employment.
Is Nike an MNC?
Multinational Corporation is a corporation that operates in more than one country around the world. Nike is one example of a multinational company. It is clothing, footwear, sportswear, and equipment supplier based in the United States.
What are the effects of multinational corporations in the Philippines?
MULTINATIONAL CORP. Western businesses with Philippine offices may have a huge competitive advantage over their non-remote office peers. The available tax cuts, rewards, and numerous other benefits offered by the Philippine government make establishing an overseas office easier than ever.
How are MNCs harmful for domestic industries?
(i) Danger for Domestic Industries: MNCs, because of their vast economic power, pose a danger to domestic industries; which are still in the process of development. Domestic industries cannot face challenges posed by MNCs. Many domestic industries have to wind up, as a result of threat from MNCs.
Do multinational corporations hurt poor countries?
If any conviction strongly unites the critics of multinationals today, it is that they exploit workers in poor countries. Ire has been aroused by the assumption that rich, deep-pocketed corporations pay “unfair” or “inadequate” wages overseas. More generally, companies are condemned for violating “labor rights.”