Advantages of Multinational Corporations
1. Cost Control
- Lower Labor Cost
- Reduced Transportation Fees
2. Taxation
- Located in low tax country
- Benefit from tax system
3. Customer Benefits
- Increased profits, reduced prices
- Knowledge + resources from other countries = better products
4. Benefits to Countries
- Increase in tax revenues
- Increase in employment
- Attract people with higher paying wages
Disadvantages of Multinational Corporations
1. Market Dominance
Harder for smaller, local firms to survive.
2. Influence over Culture & Politics
- Cultures may disapprove of what Multinational Corporation bring to their countries.
- How they influence politics & traditions.
3. National & Environmental Threats
- Outdated technology hamper quality & price
- May create more pollution, erosion, and deforestation.
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