Multinational Companies(MNCs) are the firms that have extensive production facilities in more than one country
Globalization refers to the growing integration of the world's economies. Due to this, the operation of MNCs is getting easier.
Globalization refers to the growing integration of the world's economies. Due to this, the operation of MNCs is getting easier.
Advantages:
- They generate employment by offering jobs at a large scale
- Their products are of international quality and are hence generally expected to be better
- MNCs are useful in extracting resources that would otherwise be difficult to extract
- MNCs can utilize unused factors of production
Disadvantages:
- MNCs overuse resources. As a result, resources may deplete faster.
- MNCs provide priority to foreign culture. As a result, they may implement those cultural beliefs in the country in which they operate.
- MNCs have been criticized for exploiting customer rights by charging different prices for different groups of customers
MNCs and their Advantages/Disadvantages are explained in more detail in Rob Jones' Edexcel IGCSE Business Studies book.
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