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2. What are the Characteristics of Multinational Corporation? Explain.

*Large scale operation- It is the most significant aspect in Multunational company because it is where
the production and other marketing activities happen. It also involve a lot of work and people or skill
labour to happen.

*Advance Technology- It benefits the Multinational Corporation by developing different machineries


and invention for the production of companies.

*International operation- It is the importing and exporting of products in different countries which have
partnership or trade with a certain Multinational Corporation.

3. What are the main features of MNC’s? Explain.

*Location - It is where the MNC's located. MNC's have their own location that may be a company or
factory. It may locate in the country they belong and in other country to lessen the payable inventories.

*Capital Assets- It is the tangible and intangible things owned by the MNC's. It both involved physical
and financial aspect of a corporation.

*Board of Directors- They are the elected shareholders of the corporation that will have a huge
responsibility in the corporation, which is to govern it.

4. What are the Advantages of Multinational Corporation? Explain.

*Access to Consumers- It is one of the most significant feature of MNC's

because consumers are the reason to flow and gain the success of a corporation.

*Accesses to Labor - The cheaper the labor, the bigger the possibility to continue the production in the
home and/or other countries.

*Taxes and Other Cost- Taxes are from the importt and export of different trade whether local or
international trade.

*Overall Development- The economic and industrial development of a country will increase with the
help of MNC's development.
*Technology- Some technologies are given by diferent companies from foreign countries which may
lead for more chance of connection.

*R&D- MNC helps to improve R&D for the economy.

*Exports and Imports- Increase of exports and decrease of imports of the MNC's can improved tha
balance of payment.

5. What are the Disadvantages of Multinational Corporation? Explain.

*Laws- It is one of disadvantage of the MNC's because laws are strictly implemented and MNC's have
more rules to follow, some countries don't allow operations that may lead to conflicts.

*Intellectual Property- Some intellectual properties are not allowed in domestic firms and thay may lead
to different problems.

*Loss to Local Businesses- Some goal of the MNC's is to prevent or stop the local businesses in the
country and it seems wrong and unfair for the local business owners.

*Money flows- Since some MNC's were operated in foreign country so it will lead that the money will go
to the other countries as a payment of profit, in other words the host country will have less efficiency.

*Transfer of capital- Transfer of capital will effect the growth economy of the home cuntry of the MNC's

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