Business Ethics and Corporate Governance, Second Edition

BENEFITS OF MNCS TO THE HOST NATION

• Better access to worldwide markets: We have seen earlier that MNCs are huge in terms of their business and reach, and they cater to worldwide markets. Manufacturers like Nike and traders like Wal Mart can provide access to very large markets. This leads to production of quality goods at low prices because of economies of large-scale production and compulsions of fierce world competition.
• Best access to capital investment: MNCs that are headquartered in developed countries have access to a large quantum of capital. Their stocks are listed in international stock exchanges. Apart from their own capital, they can also bring in considerable amounts from pension funds.
• Transfer of advanced technology: Many MNCs ...