International Relationship Question: Download Questions PDF
List some disadvantages of Multinational Corporation?
Answer:
★ There can be political risk to the host country as they do not run within the national dependency.
★ MNCs products lead to the demolition of small businesses as they establish their monopoly in the country.
★ MNCs may carry over an outdated technology to the host country that has become obsolete over time.
★ They use the natural resources of the host country that leads to the depletion of the resources.
★ Multinationals make a lot of money in the host country in terms of payments towards profit and take it to their home countries which results in money flow to foreign countries in large amounts.
★ MNCs products lead to the demolition of small businesses as they establish their monopoly in the country.
★ MNCs may carry over an outdated technology to the host country that has become obsolete over time.
★ They use the natural resources of the host country that leads to the depletion of the resources.
★ Multinationals make a lot of money in the host country in terms of payments towards profit and take it to their home countries which results in money flow to foreign countries in large amounts.
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