Advantages And Disadvantages Of Mnc

“The multinational corporation and international production reflect a world in which capital and technology have become increasingly mobile” - Robert Gilpin.
Multinational corporation (MNC) or called as transnational corporation is an organization focusing on business concern with operations about productions or services in more than one country. It plays an important role in the contemporary global economy, and has developed in power and visibility in recent years over developing countries in particular, and developed countries in general (Eldridge, 2011). Therefore, it is incontrovertible that the advantages from multinational production are huge for MNCs. However, the rise of multinational production brings about both opportunities and threats

MNC is an enterprise having headquarters and operating in a lot of countries, but controlled from home country. The products are manufactured by MNC called as multinational production. MNCs have existed since the beginning of foreign trade from the 17th and 18th centuries in Europe. At that time it was seen as the primary concern in the development of trade and industry in Asia, South America, and Africa. In the late 19th century, advances in communications have close links with the world market; hence, MNCs consider them as a tool to improve global relations through commerce relationships (Eldridge,

It establishes many stores, restaurants, deal in machines of more than 200 countries with the main product is carbonated soft drink, and buy nearly 400 various products. Its headquarters is located in Atlanta Georgia, USA. According to staffs, in surveys, 70% of its revenue came from trading operations outside of North American. Also, Coca Cola is associated with famous and popular activities in the world, for instance: Amsterdam Olympics, FIFA World Cup football, Rugby World Cup and the National Basketball Association, etc. Because of its strong influence, Coca affects not only society but also economic development. In society, Coca is responsible for training and educating experienced labor, and proving modern equipment for commerce of Coca Cola. Furthermore, it creates many public projects like charities in Africa and South East Asia from interests earned through selling products. However, when MNCs invest a county, particularly in developing countries, they hardly concern or practice following environmental regulations, thus, environmental pollution seriously happens and affects both directly and indirectly to lives. One of the purposes of MNCs for investing in other countries is cheap labor, with that they can reduce valued products and. But, working conditions in some factories are severe and stark; rights of workers are cut like the elimination of unions in a number of factories.