Entrance to MNCs and its Effects in Foreign Countries



MNCs: Multinational Companies are large companies that operate in several countries with their headquarters at a particular country.
Affect on Domestic Companies: To encourage multinational companies to invest in their countries, governments sometimes offer incentives such as lower taxes and administrative support. They also might ease labor and environmental regulations.
Due to their high revenue, they can offer better wages and invest in highly skilled workers. This can be disadvantageous to local companies
To conduct operations more effectively, MNC’s partner with local companies for supplies. They also might use resident businesses to get their products to local consumers. They employ local companies on contracts and rent out franchises, which results in growth for the local companies.
When governments create support systems for MNC’s, they don’t always extend the same privileges to local businesses.
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Regards
Author - Naina Ramrakhiani
Kautilya
IBS Mumbai

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