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Positive Multiplier Effect.

If Multi-national companies invests in a country ie,


opening it's new branch in that country. This MNC’s with
them brings higher economic Status through which others
MNC’s are also attracted to that country. MNC’s bring
higher job. opportunities for the local people to
manufacture their goods this mean that the local people
have large incomes which they can spend on better
quality of lifestyle which means higher Standard of living
like buying new cars ? homes or going restaurants? pubs
extending business. As the business increases the
business owners will pay higher tax Which is an increment
to the government's Land. The MNC’s also pay taxes to
the local government and all of this tax is used to improve
basic amenities? Infrastructure of the country such as
roads, clean water etc. At of end all of this will improve
the county’s reputation and other businesses are
attracted to the country. This whole process of
development is an strong positive multiple effects.

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