Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
iii.
iv.
Advantages of TNCs
They help both home and host country
IN HOST COUNTRY
1. Level of industrial and economic development increases due
to growth in ancillary and service of the host country
2. Help increase the investment level and thereby income and
employment
3. Transfer technology, esp in the developing countries
4. Get latest sophisticated management techniques from
managerial practices of TNCs
5. Domestic industry can make use of R&D outcomes of TNCs
6. Enables to increase exports and decrease import requirement
7. Can break protectionism, create competition among domestic
companies and thus enhance their competitiveness
IN HOME COUNTRY
1. Industry activity gets activated
2. Contributes for favorable balance of payments in long run
3. Create opportunities for marketing the products produced in
the home country throughout the world
4. Increase GNP of home country