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 Disadvantages 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 i...