question_answer

In India, many multinational companies are operative but majority of them are producing goods and services for richer section. They are least bothered for weaker section of the society. In many cases they are producing goods like pedigree in a country where 26 million human beings sleep without food, resources are being allocated for production of dog food. Therefore, it seems that production should be given in the hands of Indian companies which understand Indian priorities and allocate resources accordingly. In the light of above facts, discuss merits and demerits of multinational companies.

Answer:

Ans.     MNCs do have an advantage of huge size, latest technology and huge capital investment but it has following disadvantages.

(a) It disregards National Priorities

(b) It leads to Creation of Monopoly

(c) It leads to Depletion Of natural resources

(d) It creates Threat to National Sovereignty