Advantages and disadvantages of multinational companies

MULTINATIONAL COMPANIES is a company that is based in one country but operates factories, sales offices in other countries.

Example: BP Company, Total companies, Shoprite Checkers, Bata Shoe Company, coca colonial company they are also public limited companies

Advantages

They have worldwide contacts which the host country can use to boost its export sales
They pay tax which boost the governments income
They provide jobs (Employment) around the world
They bring business knowledge, skills and technology with them

They bring foreign exchange by selling their goods abroad
They provide quality and services to private households as well as other companies

They tend to exploit undeveloped economies thorough practices such as reducing the price lower than the local traders
They dominate most export market and forces the small local companies out of business or take over the local firms-
They usually bring their own expert instead of training the locals too participate in important decision making
They are able to pay high salaries and offer better conditions to attract most of the skilled locals people at the expense of the local industries

Remittance of their profits are taken bank home, hence draining the host countries foreign exchange reserves
They are centrally controlled and do not take into account the conditions in field in host countries when drawing up their policies.