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8 November, 11:14

Do the positive economic impacts of mnc's outweigh the negative impacts?

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  1. 8 November, 11:15
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    Despite the fact it has negative impact, the positive impact outweighs the negative.

    Explanation:

    When multinational corporations invest in a country they create employment opportunities. They account for increased incomes and expenditures in the economy of the host country stimulating growth. Workers also benefit from technology transfer as new machinery is imported into the host country

    Benefits of Multinational Corporations

    1. Create wealth and jobs around the world.

    2. Their size and scale of operation enable them to benefit from economies of scale enabling lower average costs and prices for consumers.

    3. Large profits can be used for research & development.

    4. One natural advantage that multinational corporations have is the ability to produce goods using the least expensive methods possible worldwide.

    Negative Impacts of Multinational Corporations

    1. Environmental Impacts.

    2. Transfer Pricing.

    3. Social and Cultural Impact.

    4. Worker Exploitation.

    5. Economic Uncertainty.
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