Benefits and Challenges of Multinational Companies (MNCs)
Multinational companies (MNCs) are not without benefits, which may be to the government, the economy, and the people or even to itself. Cole (1996) stated that the size of multinational organization is enormous; many of them have total sales well in excess of the GND of many of the world's nations. Cole also stated that World Bank statistics of comparison between multinational companies and national GNPs shows, for example, that large oil firms such as Exxon and Shell are large in economic terms that nations such as South Africa, Australia and Argentina are substantially greater than nations such as Greece, Bulgaria and Egypt.
Other large multinational companies include General Motors, British Petroleum, Ford and International Business Machine (IBM). Some of the benefits of multinational companies are:
1. There is usually huge capital investment in major economic activities
2. The country enjoys varieties of products, services and facilities, brought to their door steps
3. There is creation of more jobs for the populace
4. The nation's pool of skills are best utilized and put to use effectively and efficiently
5. There is advancement in technology as these companies bring in state-of-the-art-technology for their businesses
6. The demand for training and retraining and advancement in the people's education becomes absolutely necessary. This will in turn help strengthen the economy of the nation
7. The living standard of the people is boosted
8. Friendliness between and among nations in trade i.e. it strengthen international relation
9. The balance of payments of nations in trade are improved on
In the words of Cole (1996), he stated that the sheer size (and wealth) of multinationals means that they can have a significant effect on host country. To Cole, most of the effects are beneficial and include some of the above or all. The Electronic Library of Scientific Literature (1996)...