Public opinion and government policy with respect to MNCs, in other words, conjure up

the image of a fault line along the earth's crust, quiet for the moment but with pressures
building below that could—will—divide the earth above. Despite the best-educated
guesses, however, nobody really knows just when and under what circumstances this
will happen or how severe the damage will be. Already odd alliances have been formed
among the parties most affected by the growth of MNCs. One of these took place
beginning in 1991 when free-trade advocates in the United States found themselves
joined by the multinationals but strongly opposed by rank-and-file workers over the
approval of the North American Free Trade Agreement (NAFTA), which was ratified in
1992 despite labor's objections

A multinational corporation (MNC), also called a transnational corporation (TNC), or

multinational enterprise (MNE),[1] is a corporation or an enterprise that manages production or
delivers services in more than one country. It can also be referred to as an international
corporation. The International Labour Organization (ILO) has defined[citation needed] an MNC as a
corporation that has its management headquarters in one country, known as the home country,
and operates in several other countries, known as host countries.

The Dutch East India Company was the first multinational corporation in the world and the first
company to issue stock.[2] It was also arguably the world's first megacorporation, possessing
quasi-governmental powers, including the ability to wage war, negotiate treaties, coin money,
and establish colonies.[3]

The first modern multinational corporation is generally thought to be the East India Company.[4]
Many corporations have offices, branches or manufacturing plants in different countries from
where their original and main headquarters is located.

Some multinational corporations are very big, with budgets that exceed some nations' GDPs.
Multinational corporations can have a powerful influence in local economies, and even the world
economy, and play an important role in international relations and globalization

Possible advantages of a multinarional corporation are: 1.Multinational Companies are able to

sell far more than other type of company. 2.Multinational companies can avoid transprt costs.
3.Multinationals can take advantage of different wage levels in different countries(as in some
countries only women and children work, so they wages can be low) 4.Multinationals can
achieve great economies of scale. 5.Multinationals have less chance of going bankrupt than small
companies. 6.Multinationals can carry out a lot of research and development.

MULTINATIONALS : ADVANTAGES AND DISADVANTAGES

The following table lists the advantages and the disadvantages of multinationals:
The foray of multinationals into a country
requires labour thereby ensuring new job
opportunities.
They will bring in advanced technology and
management style.
The pressure of competition forces companies
to undertake product innovation as a result
of which new and better products flock the
market.
Better logistics management and financial
strength enjoyed by multinationals sets new
standards in the prevailing markets
Share of profit remitted to the parent
company reduces the amount of money
created.
A strict money-making oriented approach of
multinationals may prove to be nonbeneficial.
High and regulated transfer prices may
increase the costs of operations.
The enormous financial strength and
influence enjoyed by multinationals may be
selfishly utilized through political pressure.