What are some ways both positive and negative that a Multi

What are some ways - both positive and negative - that a Multinational Corporation (MNC) can affect its host country? Explain. Also, include a specific MNC and host country to use as an example in your discussion response.

Solution

A registered company that functions in more than one country is often referred to a Multi National Company (MNC). The country within the geographical boundaries of which an MNC is operating is called the host country. For example, The Coca Cola Company is an MNC of American origin with its headquarters in Atlanta, which is operating worldwide. India is an example of a host country in this situation.

Some of the advantages that MNC’s have on host countries are as follows:

However, just like MNCs prove beneficial for the host country, there are some disadvantages that MNCs create for host countries as well.

Thus, the operation of MNCs is both beneficial and disadvantageous to the host country. However in the face of globalization today, MNCs are, more often than not, a positive impact on the host country.