Multinationals companies boon or bane

Demerits of multinational corporation

Also, they are frantically opposed to workers right to organize in order to bring about more reforms. DOW Industries. For instance, these companies often resist any legislation which mandates increased wages or better working conditions. DOW industries knew the plant was still leaking chemicals when they bought the plant in as well as all the stored toxic waste on site. Also, many of these companies are known to block regulations which increase the likelihood of worker welfare. Some of the negative points against the multinationals have been listed in this article. J-Roc77 70 1 point MNCs don't go creating opportunities for altruistic reasons they do so because it benefits themselves. Are Multinational Companies a Boon or a Bane?

This obviously has a positive impact on the balance of payments situation. Instead, they are generally there for monetary gain. Also, most of the jobs created by multinational companies are high tech.

multinational corporations pdf

If the government uses them well, they can benefit the economy. It paves way for the mergers and acquisitions resulting in improved economies of scale. This is also a mechanism to exploit the abundant human resources which Bangladesh has.

Also, we will have a closer look at some of the negative points where multinational companies exert their power to bully countries. Apart from the benefits, MNC culture has its own set of drawbacks.

Part 2: Disadvantages of Multi-National Corporations Many developing countries have been unable to control multinational corporations because of the power that they wield over these countries. However, there are few oil companies which have been known to misuse this economic power to exploit the countries that they operate in.

For instance, as long as Bangladesh is poor, there will be an abundant supply of cheap labour.

effects of multinational businesses

When MNCs have been forced to choose between their own welfare and the welfare of a population they consistently choose themselves. More exports generally imply a more favourable balance. Hence, in purely financial terms, multinational companies do wield tremendous influence on the day to day operations of many countries.

The economic power that many multinational companies wield is commendable, to say the least.

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Knowledge: Multinational companies in India whether Bane or boon