Question

what are benefits of multinational groups

Answer 1

Multinational corporations or groups can be defined as those enterprises that operate in several countries across world. These MNCs offer many goods and services in more than one country. International corporations produces from car manufacturers to food stuffs across world and these MNC main purpose is earn profit.

List of Advantages of Multinational Corporations;

1. Cheap Labor
One benefit of the multinational corporations is the opportunity to operate in countries where labor is cheap and due to this profit is maximized.

2. Large Market Base
By opening MNC branches in several countries, MNC product can reach billions of people in the world and it means MNC create market in world by opening branch in the different countries.

3. Tax Cuts
Multinationals can enjoy lower taxes in those countries where the government of those countries want foreign direct investment. This is because MNC provide some benefits by providing some products which were not available before in these countries. Hence the government of these underdeveloped countries gives tax benefits to these MNC.

4. More new job creation
When international companies set up branches in underdeveloped countries, employees and members of the team are locals. Hence due to MNC more jobs are created which leads to more benefits for the underdeveloped countries.