Advantages of Multinational Corporations

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.