Benefit broad by the multinational company to the society
Multinational corporations no doubt, carry out business with the ultimate object of profit-making like any other domestic company. According to ILO report “For some, the multinational companies are an invaluable dynamic force and instrument for wider distribution of capital, technology, and employment, for others they are monsters which our present institutions, national or international, cannot adequately control, a law to themselves with no reasonable concept, the public interest or social policy can accept.
MNC’s, directly and indirectly, help both the home country and host country. Multinational firms can bring a number of benefits that improve the quality of life for a host nation, particularly a less-developed nation.
(a) Access to worldwide: Two of the most significant benefits are access to worldwide markets so that the host nation may produce for a larger market.
(b) Broader access to capital: Developed nation give broader access to capital which may be in short supply in the host nation.
(c) Transfer advance technology: Multinational companies help transfer advanced technology among nations so that all can share the latest technology.
(d) Research and development: The multinational firm also can introduce economies of scale in techniques that otherwise would not be available can be used by a small branch in a host nation.
(e) Progressive business: One significant benefit that frequently occurs is to encourage the development of more locally owned progressive businesses.
(f) Encourage local business development: Some multinational firms go further and have a conscious policy of encouraging local business development.
(g) Jobs for employment: with regard to benefits for labor, a multinational firm provides additional jobs for employment of any surplus labor which a nation has.
(h) Wider access to high-quality management: normally a multinational firm provides wider access to high-quality management talent that tends to be scarce in many nations of the world.
(i) Better access to products: another possible benefit multinational firm is that they provide consumers with better access to products.
(j) Encouragement of world economic unity: multinational business is its encouragement of world economic unity which may lead to social and political integrations and encourage world harmony.