Expansion of market territory

The growth of various economies along with the growth of GDP and per capita income resulted in the rise in the living standards. these factors contributed towards the expansion of market territory. Market superiorities: MNCS enjoy a number of market superiorities over the domestic companies. They include

5.1. .They enjoy the market the reputation.They enjoy quick transportation and warehousing facilities.They adopt more effective advertising and sales promotion technique. 2. 4.Availability of more reliable and up to date data and information.They face less difficulties in marketing the products. 3.

3. .They can use the funds more effectively and economically.Financial superiorities: MNCS enjoy financial superiorities over national companies in addition to market superiotories.They have easy access to external capital markets. 2. They are : huge financial resourcesat the disposal of the mncs. 4.They can mobilise different types of resources of high quality easily.they are used for turning the enviornment and circumstances in their favour.

Techonoligical superiorities: In fact mncs are rich in advanced technology. .they develop the technology through continuous research and development.5.They can have access to international banks and financial institutions.the rich financial and other resources of the MNCS enable them to invest on R&d And develop the advance technology.

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Domestic input suppliers get more business 6. Mncs may adopt ethnocentric approach in staffing 3.1. Utilisation of natural resources of host countries 1. Pollutes the enviornment of the host countries . Domestic industry gets the latest techonology 5 . Increases economic activity 2. Mncs may distort the economic structure of the host countries 4. Techonology developed by the mncs may not suit the needs of host country 2. Increases industrial activity 3. Increases employment and income levels 4.

Boost up industrial activity of the home country 1. Get the benefit of foreign culture 4.1. Create employment for home country people 3.May neglect the industrial development of the home country as the transnational companies follow the secular approach 3.May cause the erosion of the domestic culture 4.May exploict the natural resources resulting in excessive expolitation of natural resources . Create the demand for the home country products 2.Transfer capital to other countries and cause un favourable balance of payments 2. Saves the domestic country from enviornmental pollution 5.