Advantages and Disadvantages of international cooperations among MNCs

dachsonish · Jan 27, 2006, 10:49 AM

Sound like a question for school essay!

Adv: share the local knowledge in the foreign country (something very difficult to obtain w/o strategic alliance)
Share distribution systems/chain
Look local (like US MNC looks chinese in china to the chinese customers)

Disadvantages: many times slows the process of decision making
Must share profits
After sometime the chinese companies become useless once the US companies have learned the process and made personal relationships with their customers and supply chain/ distribution chain.

And that is your short and simple answer... Good luck! Hope this is not too late.

I got an A++ in this international class.

arunkanbu · Nov 2, 2008, 11:03 PM

Mnc advantage and disadvantage

shbee · Apr 5, 2011, 11:28 AM

MNCs provide much needed money into LEDCs economies, however the money doesn't always get to the people who need it or to the government. More money comes in from taxation- but if you tax too high MNCs will go else where. Also,its not like a small local business trying to make it into the market... The market is already there- but then of course the local industries will find business getting harder and harder due to MNCs. Some also think TNC/MNCs are demeaning to culture and create negative work ethics.
Hope this Helped... I'm doing an essay on TNC/MNCs so I hope I gave you some good info!

anjansingh · Jan 5, 2012, 06:09 AM

an mnc reates hurdles for small scale industries in development. added to this, it creates a false sense of need in consumers. the employees in an mnc are mostly of the hire and fire type. though with it, modernization and globalization come, many people oppose it as it goes against their tradition. new products of an mnc can be produced with better technology and the cost of production is considerably low. reduced prices and better quality good challenge the host countrys market.

Advantages and Disadvantages of international cooperations among MNCs

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