1. Benefit to the Host Country
- The levels of investment, employment and income increase due to the operations of multinationals.
- Multinationals help in the growth of ancillary and service industries thereby increasing industrialisation and economic development.
- Multinationals bring advanced technology to the host country.
- Business firms in the host country get sophisticated management techniques and practices.
- Multinationals enable the host country to increase its exports and reduce the imports.
- Domestic industry gets the benefit of R&D systems of multinationals. Their capability of invention and innovation increases.
- Multinationals increase competition and break domestic monopolies.
- Multinationals help to integrate national economies both economically and culturally.
2. Benefits to the Home Country
- The products manufactured in the home country can be easily marketed throughout the world.
- Employment opportunities for home country people are increased both at home and abroad.
- The level of industrial activity in the home country increases.
- In the long run, the balance of payment position of the home country improves through inflows in the form of dividend, interest, etc.