How an investment by an MNC benefits the home country?


Multi-National Corporations are large companies established in a particular country and has offices, markets and produces and sells its products in many countries. The main benefits of MNC to the home country are:


Additional investment: MNCs can be beneficial to the home country as the huge firms with many resources may bring in their additional share of investment. This is particularly beneficial to the developing countries that have scarcity in resources.


New and advanced technology: MNCs bring in with them the latest technology as an investment to the home country. MNCs always have new and advanced technology for operations which can be used by the home countries to increase their production.


Increased employment opportunities: MNCs always bring in with them bulk of employment opportunities. They require qualified and professional employees for the management of their regional offices in the home country. It also increases employment in allied sectors like transportation, IT and other industries. They also generate a lot of other jobs in sectors like footwear and garments when they place orders for the products with the local industries. This increases the employment opportunities in the home country.


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