[ad_1]
without Multinational companies (MNCs) use, which can make the government, the economy and the people, or even himself. Cole (1996) found that the size of the huge multinational organizations; many of them well above the GND total sales in many countries around the world. Cole also noted that the comparison of World Bank statistics for multinational companies and the national GNP shows, for example, that the big oil companies like Exxon and Shell great economic sense, that nations such as South Africa, Australia and Argentina significantly higher than nations such as Greece, Bulgaria and Egypt.
other large multinational companies include General Motors, British Petroleum, Ford and International Business Machine (IBM). Some of the benefits of multinational companies are as follows:
1. In general, there is a huge investment is a major economic activity
2. The country is enjoying varieties of products, services and facilities, put on the door step
3. There is a population of more jobs
4. The nation’s best to use the skills pool and should be used effectively and efficiently
5. There is advancement in technology, because these companies to provide state-of-the-art technology to businesses
6. The demand for training and retraining and advancement of education of the people is absolutely necessary. This in turn helps to strengthen the economy of the nation
7. The standard of living of the people has also increased
trade, ie between 8 between friendly nations and strengthen international level
9. The balance of payments improved trading nations
the words of Cole (1996) argued that the sheer size (and wealth) Multinational means that a significant impact on the host country. Cole, the most beneficial effect, and contains some of the above, or the total. The Electronic Library of Scientific Literature (1996) explained during the benefits of MNC’s a theory called “The Theory of externalities. The theory of the benefits MNCs in terms of those who maintain that the importance of foreign direct investment (FDI) as part of the necessary engine growth . the contribution Davies (1989), he (1989: 260), the advantages given some theories / benefits multinational Davies. suffixed that “economic theory” and multinationals which took a comprehensive and critical look at the benefits of MNC
more. service was these people’s theories and some
first significant injection into the local economy in terms of investment
2. The best utilization of the country’s natural resources
3. They help in strengthening domestic competition
4. They are a good source of technological expertise
5. Expanding market in the host country
Problems / Problems of multinational companies
No company will face no problems. The fact that an organization is large or small, will certainly speak to the survival and continuity against any problems or negative factors / influences. Weihrich and Koontz (1994) states that the operations of multinational companies to measure the environmental challenges and most of the challenges faced by multinational companies as follows:
1. In general, there is an acute shortage of labor – the lack of people in managerial and technical skills
2. The challenge unfriendly business environment
3. Usually there is a problem between the conflicting interests of the three parties – the government, the MNC and the general public
4. They may cost a huge labor force in the host country, at least, that the expatriate managers in Hungary or elsewhere
Impressively, gave the authors of the above-mentioned benefits all round and comprehensive notes MNC to the host country in which they operate, and as well, highlighting the benefits derived from multinationals themselves in the host country. Similarly, despite the challenges and problems faced with these MNC, yet continue to survive and waxing stronger.
[ad_2]
Source by Oluwanisola Seun