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Questions
Write any two advantages of MNC.
What are the advantages of MNC’s?
Solution 1
1. Low-Cost Labour: MNC set up their facilities in low-cost countries and produce goods/ services at a lower cost.
2. Quality Products: The resource, experience and expertise of MNCs in the sphere of research and development enables the host country to establish its research and development system which helps it in producing quality goods and services at the least possible cost.
Solution 2
1. Low-Cost Labour:
MNC set up their facilities in low-cost countries and produce goods/services at a lower cost. It gains a cost advantage and sells its products and services of good quality at low cost.
2. Quality Products:
The resource, experience, and expertise of MNCs in the sphere of research and development enables the host country to establish its research and development system which helps it in producing quality goods and services at the least possible cost.
3. Proper Use of Idle Resources:
Because of their advanced technical knowledge, MNCs are in a position to properly utilize the idle physical and human resources of the host country. This results in an increase in the National Income of the host country.
4. Improvement in Balance of Payment Position:
MNCs help the host countries to increase their exports. As such, they help the host country to improve upon its Balance of Payment position.
5. Technical Development:
MNCs carry the advantages of technical development to hosting countries. In fact, MNCs are a vehicle for the transference of technical development from one country to another. Because of MNCs poor host countries also begin to develop technically.
