Merits of multinational companies



Merits of multinational companies

 

  1. Quality: it provides and produces quality goods. It produces goods which can satisfy the international customers too. It has huge investment and consists of trained and qualified personnel and specialists. It uses advanced technology to produce quality goods.
  2. Mass production: it produces huge number of quality goods to satisfy the customers from all around the world. It must supply the goods constantly worldwide. Advanced technologies are used for mass production.
  3. Low cost of production: the cost of production is also low. It produces goods in huge quantity which increases the rate of return and decreases in the cost of production. Low cost of production is the major benefit for multinational companies
  4. Employment: it provides employment opportunities to large number of people from all around the world. Most of the host countries can help to solve the unemployment problems. It helps to maintain the living standard of people. It helps in consumer satisfaction too.
  5. Increase in government revenue: multinational companies produce and sell the goods in large number of quantities. It earns abnormal profit. Government from both parent and host countries can collect custom duty, income tax, sales tax etc. In that way, government can earn more revenue.
  6. Increase in export:  it produces commodities in international standard. They are not produced to meet the needs of local people only. Host countries have the benefit of exporting the goods in other many countries of the world where the company has been or not established. It helps largely in the export business
  7. Industrialization: multinational companies help in industrialization. It brings more capital in the business and help to establish industries. It also uses advance technologies to establish industries. It helps in establishment of industries in host country too.

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