In a modern society. many transnational companies have been founded. They are called transnational corporations because these corporations operate in more than one state at a clip. For illustration. McDonalds. Pepsi. KFC. Nike. I will discourse the advantages and disadvantages of these corporations. For the advantages. First. transnational merchandises and services provide the best possible criterions. Because in a foreign state. Since consumers are willing to pass their money on merely the best merchandises. the multination companies need to maintain the strong competitory so they must to bring forth good goods.
Second. transnational corporations play a large function in making employment in the foreign states. Because of their many subdivision companies. they employ local people in those states to work for the corporation. This is particularly of import in developing states where unemployment is high. Third. the growing of transnational companies in those states will increase degree of industrial and economic development. Because they need more stuffs in the host state so the MNC’s create much more chances for the industry.
Last but non the least. the staff from those companies are of different nationalities and civilization. they can portion different believing do the company turning up better. For the disadvantages. transnational companies have extremely competitory advantages due to low monetary values over local houses and can destruct local competition. These local companies hard to last. Many of these transnational companies seek take advantage the political system by coercing because they have such a strong impact on the economic system. The companies can merely pay off authorities functionaries to protect their company from being shut down. They may avoid revenue enhancement by practising transportation pricing. The transnational companies may afford a low wage to their labour force. because in some underdeveloped states. labour is cheaper than developed states. In my sentiment. transnational companies provide more advantage things than disadvantages to people and states. They straight and indirectly assist both the place state and the host state.
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