You are on page 1of 6

Multinational Corporation

INTRODUCTION
A multinational corporation (MNC) or
transnational corporation (TNC), also called
multinational enterprise (MNE), is a corporation
or enterprise that manages production or
delivers
services in more than one country. It can also be
referred to as an international corporation.

IMPACT ON COUNTRIES:
A large amount of tax collected through
mncs .
Increased revenue.
Economic health improved .
Employment increased.
Foreign relation increased.
Foreign currency maintenance and
dealing efficiency increased .
Market sentiments improved.
Demand supply scenario balanced.
Available resources used effectively
and generate income for countries and
other domestic companies.
Import export policies implemented

Conclusion:
n A mnc gives many advantages
to domestic
companies through purchasing of
raw
material and resources. a country
benefited
in term of employment and
economic health
help to reforms . a new company
uses mncs
network to expand their
business. Industrial
growth and gdp Effected so, mnc
become a
milestone in developing
countries.

Benefits from MNC

To Host Countries
Transfer of technology, capital and
entrepreneurship to the host country
Employment
Improved competition in the host country
and ultimately better utilization of
available resources
More products for local consumers
Greater access to high quality managerial
talent that tends to be scarce in the host
country, particularly developing ones
Encourages the world unity and all
resulting in world harmony

To home countries
Acquisition of raw materials from abroad,
steady supply of raw material at a lower
price that can be found domestically
Technology and management expertise
acquired from competing in global
markets
Export of components and finished goods
for assembly or distribution in foreign
markets
Inflow of income from overseas profits,
royalties licensing fees and management
contracts
Job and career opportunities at home and