Skip to main content

🎓 New resources added daily! Join over 50,000 students using Padandas

List out any two disadvantages of multinational companies.

List out any two disadvantages of multinational companies.

Solution

Multinational companies, despite their benefits, carry certain disadvantages for the host country. Two of them are:

  1. Economic and consumer exploitation: they buy cheap labor and raw materials at low rates while charging high prices for their products.
  2. Outflow of capital: they take profits back to their own countries and pay minimal local wages, reducing the host country's foreign currency.

Explore more questions

  1. 1.

    What is business ethics? Discuss the different areas of social responsibility of business.

    Asked in 2078 (15 marks)
  2. 2.

    Define transformational leadership. Critically examine the motivation-hygiene theory of motivation.

    Asked in 2078 (15 marks)
  3. 3.

    What is system theory? Discuss the contribution and limitations of system theory.

    Asked in 2078 (15 marks)
  4. 4.

    State and explain the major problems of business in Nepal.

    Asked in 2078 (10 marks)
  5. 5.

    What are the strategies for motivating employees? Explain.

    Asked in 2078 (10 marks)
  6. 6.

    State and explain different types of modern organization structures.

    Asked in 2078 (10 marks)