Positive Influences of Multinational Companies 

A brief mind map on the positive influences of international companies 

HideShow resource information
View mindmap
  • Positive Influences of Multinational Companies
    • Increased Employment
      • FDI will usually result in employment benefits  for the host country as most employees will be locally recruited. 
    • Higher Income
      • More workers will be employed. Income will increase for both workers and the host country.
    • Provision of education and training
      • Workers will be trained to use the new technology, and specialized equipment. Resulting in improvement of workforce. Especially in developing countries which they can’t afford to train large numbers of their population.
    • Investment in local infrastructure
      • MNC's require good transport and infrastructure systems in order to operate efficiently. It is more likely that they will invest in the improvement of infrastructure which will benefit the host country and the domestic consumers.
    • Provision of tax revenue
      • Profits of multinationals  will be subject to local taxes in most cases, which will provide a valuable source  of revenue for the domestic government.
    • National Reputation
      • The presence of one multinational might improve the reputation of the country, so that more MNC's will follow the other multinationalssteps.
    • Technology Transfer
      • Multinationals will bring with them technology and production methods that are probably  new to the host country and a lot can therefore be learnt from these techniques. 
    • Increasing choice
      • Multinationalsmight manufacture for domestic markets providing an increase in choice of goods at a possibly lower price.
    • Promoting Fair Trade
      • Many multinationalshave the power to promote free trade. An example of an MNC would include the body shop.


No comments have yet been made

Similar Accounting resources:

See all Accounting resources »See all Unit 3 Multinational companies resources »