Multinational Corporations Disadvantages

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The infrastructure that multinational corporations are able to provide on a local level helps to achieve many goals. Not only can community programs be effectively operated, but good paying jobs are provided and that improves the local economy. The only problem is that with every benefit, there is always a disadvantage that comes with it. Here is a look at the pros and cons of what multinational corporations bring to the world today.

Because multinational corporations are able to leverage their buying power for goods or services, it means that they have a unique chance at cost savings that smaller businesses just don’t have. This lowers the prices of products and that means consumers get to save money on what they need. Stores like Walmart are an excellent example of this.

Multinational corporations also carry an advantage in that they are consistently dealing with foreign currencies. This means that depending on exchange rates, they can create more local wealth just because of the fact that they have a business presence in certain nations. This exchange of wealth can lead to the creation of more jobs and help to further develop local and regional economies.

Multinational corporations are able to better control the supply chain from start to finish because they often control most, if not all of it. This means consumers can have confidence in the fact that no matter where they are purchasing something, there will be a certain standard of quality to the product. A burger at

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