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COUNTRIES…read more

Slide 2

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Benefits MNC's Bring
Industrial and economic development increases because of the growth of MNC's in
the host country
Investment levels increase as do employment levels and the income level of the host
country due to the operation of MNC's
The industries of the host country get the latest technology from foreign countries
through MNC's
The host countries businesses get management expertise from MNC's
MNC's break the trade barriers and create competition among domestic companies
which enhances their competitiveness
The host country can reduce imports and increase exports because the MNC's
producing goods in the host country
MNC's that take CSR seriously can greatly benefit communities they operate in
MNC's such as Green and Blacks and The Body Shop invest in local communities by
ensuring sustainability of the local resources and providing training ­ this helps the
local economy further and the local workforce…read more

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Negative impact MNC's bring
Traditional culture is weakened
Many MNC's may take advantage of the less strict safety regulations of host
countries. There may be more injuries which only hurt the firm in the short term but
may harm the local residents in the long term
MNC's may negatively affect the local economy. They may compete with local
businesses and force them to close. This leads to job losses which means the host
countries government has to pay for welfare benefits. This is especially worse if the
MNC doesn't reinvest in the host country
Many MNC's set up production or mining facilities that take the countries natural
resources to be used for their own benefit. This leaves the host country poorer
MNC's might not be committed to the host country and may simply leave with no
regard to the local workforce if a negative event happens e.g. A recession
Child labour may be used an exploited
Rather than training local workers MNC's may bring skilled workers from overseas
and only provide locals with unskilled jobs. This reduced opportunities to develop
skills.…read more

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Are MNC's good or bad?
Many businesses considered `good' can
also be accused of having done
something bad
On the other hand, many businesses
considered `bad' have also done positive
It's not as black and white as whether
MNC's are positive or negative.…read more


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