The establishment of multinational companies has been good boon all over the world..Some of its
importance are as follow:
1.TRANSFER OF CAPITAL AND TECHNOLOGY
The multinational companies transfer investment ,advance technology to developing countries through establishing branches
and subsidiaries. Therefore developing countries like Nepal get benefited of receiving Advanced technology and capital
investment through such companies.
2.Mass production
With help of advanced technology, the can produce quality goods and products at cheaper price.Due to Job innovation and
specialization help to produce more consumption increase as production in more unit reduce cost.
3.INCREASE IN EMPLOYMENT OPPORTUNITY:
A multinational company requires a large number of skilled as well as unskilled employees to operate its activities.
Thus it provides employment opportunity to the people of host country as a result economic standard of society is improved.
4.INCREASE IN GOVERNMENT REVENUE
A multinational company is a large scale business.It pays a large amount of duties ,income tax, vat,etc to government.
Therefore Government revenue is increased due to operation of such companies.
5.RESEARCH AND DEVELOPMENT:
In complete world, it is need of Research and Development. To meet international standard of its products and services ,a
multinational company conducts several research and development activities.Constantly such programs are beneficial to society.
It helps to develop better equipments, quality products and advanced technology in production.
6.GOOD INTERNATIONAL RELATION:
A multinational company recognizes the country in the international market. It creates harmonious relation between parent company
and subsidiary countries. It recognizes exporting country to all over the world....
Thanks, to post, it's helpful information. 'MNC'
ReplyDeleteis a multinational corporations. The multinational corporations are important to help provide economical income to developing countries. It's helpful to jobless peoples to offering a jobs in the countries. This gives a outstanding effect to their economic system. Multinational companies are mainly excited about making money for their investors. Company Information
Chutiya bdwa
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