What benefit of multination companys

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Benefits of multinational companies are -
a. They can increase the inflow of foreign capital.
b. Increase employment opportunities.
c. Local companies supplying raw material to MNC's have also prospered.
d. They bring in latest and new technology.
e. MNCs play an important role by setting up production jointly with some of the local companies. Example : MNCs can provide money for additional investments like buying new machines for faster production.

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A multinational corporation is one that has a presence in more than one country. The precise definition is debatable, but commonly it involves having management in one country and production or service provision in at least one other country. While there are drawbacks to such a set-up, there are also several key benefits. Cost Controls

Operating overseas can take advantage of lower labor costs in the same way as outsourcing, while allowing greater supervision and control to ensure quality. A multinational corporation can also benefit from reduced transportation costs. For example, a jewelry company could save money by setting up a branch in a country with gold mines, making rings locally, then shipping them to the home country for retail, rather than shipping the gold to the home country for local manufacture.

Taxation

Having operations in multiple countries may allow the company to take advantage of tax variations. The company could place its business officially in the country with the lowest tax rates, even if management is elsewhere. Running a multinational corporation can help the business benefit from the tax systems of countries that require the company to have a physical presence to benefit from low rates, rather than simply operate a "shell" or "paper" company.

Consumer Benefits

A multinational corporation that benefits from both low production costs and low taxes should be able to make increased profits while reducing prices, which benefits consumers. The company may also have access to knowledge and skills in multiple countries that could help it produce better products.

Benefits to Countries

The benefits of multinational corporations to foreign countries are hotly debated. However, the two main arguments for benefits are that it increases tax revenues for the country and that it increases employment. In the latter case, the multinational may attract staff by paying higher wages than local counterparts. The employment may also have a knock-on benefit for the local economy, with employees spending their wages on products and services from local firms,