1. ADVANTAGES AND
DISADVANTAGES
OF MNCS
Team work: Santiago Carrillo, Fuensanta Saldivar, Denise
Ramirez, Alexia Guevara, Gustavo Jimenez, Saul Jimenez,
Jorge Duron, Benjamin Gonzalez, Rodrigo Gallo y
Fernando Ramirez
2. ADVANTAGES
Access to Global Markets: Multinational companies can tap into broader global markets,
expanding their customer base and generating increased revenue.
1.
Economies of Scale: By operating on a large scale, multinational corporations can benefit from
economies of scale, reducing per-unit production costs and enhancing overall efficiency.
2.
It will increase employment opportunities for the people of a nation
3.
It allows the development of alliances and strengthening of ties between countries, the
relationship between societies is improved while receiving economic benefits that promote
the growth of all those involve
4.
It will help in increasing the trade of the nation.
5.
3. DISADVANTAGES
Exploitation of Resources: Some multinational companies may exploit the natural resources
and labor force in host countries, leading to environmental degradation and unfair labor
practices. This can result in social and ethical concerns.
1.
Inequality: MNCs may contribute to income inequality within and between countries. The
benefits of economic development and job creation may not be evenly distributed, leading to a
widening wealth gap.
2.
Loss of Cultural Identity: The influence of multinational corporations can lead to the
homogenization of cultures as global brands and products dominate local markets. This may
result in the loss of unique cultural practices and identities.
3.
Tax Avoidance: Some multinational companies engage in aggressive tax planning to minimize
their tax liabilities, taking advantage of loopholes in different countries' tax systems. This can
deprive host countries of tax revenues needed for public services and infrastructure.
4.
Dependency on Global Economy: Host countries become vulnerable to global economic
fluctuations and decisions made by MNCs. Economic downturns or changes in corporate
strategies can have significant impacts on local economies, leading to job losses and financial
instability.
5.
