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.
Thank You
Regards
Author - Naina Ramrakhiani
Kautilya
IBS Mumbai
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