Multinationals are the businesses or companies that operate in several countries. A multinational has more access to costumers and deal with the international market of goods and services. Multinationals have a wider scope of growth as it helps manage the exports and imports, they have more exports and lesser imports. The investment level, employment level, and income level of the country increases due to the operation of multinationals. The level of industrial and economic development increases due to the growth of multinational companies.
However, establishing a multinational is very difficult, as it has to deal with international laws and politics. It is a very risky business because the company has to understand the needs and wants of people from different areas. As multinationals operate in different countries a large sums of money flow to foreign countries as payment towards profit which results in less efficiency for the host country.Transfer of capital also takes place from the home country to the foreign country which is unfavorable for the economy.
10/10
Very Good!
You missed nothing!