Explain any three benefits and two criticism of Global enterprises.
Explain any three benefits and two criticism of Global enterprises.
Benefits of Global enterprises :
1. Employment opportunities : They increase the investment level and thereby employment and income level.
2. Advanced technology: Developing countries are generally technologically backwards. The global enterprises bring advanced technology to these countries.
3. Foreign capital: Global enterprises make direct foreign investment, thereby speeding the process of economic development.
4. Growth of domestic firm: Global enterprises stimulate the growth of local enterprises.
Limitations of multinational corporations / Global enterprises are as follows :
1. Disregard of national objectives : Sometimes, the multinational companies disregard the national objectives. As a result, planning done by the government falls in vain.
2. Depletion of national resources: Multinational companies are set up with profit motive only. They exploit the natural resources in an unbalanced manner. So it is harmful to the economies.
3. Threat of obsolete technology: Sometimes in the 'technology Kant' process, obsolete technology is transferred as a result of which the diseconomies of scale prevail.
Benefits of Global enterprises :
1. Employment opportunities : They increase the investment level and thereby employment and income level.
2. Advanced technology: Developing countries are generally technologically backwards. The global enterprises bring advanced technology to these countries.
3. Foreign capital: Global enterprises make direct foreign investment, thereby speeding the process of economic development.
4. Growth of domestic firm: Global enterprises stimulate the growth of local enterprises.
Limitations of multinational corporations / Global enterprises are as follows :
1. Disregard of national objectives : Sometimes, the multinational companies disregard the national objectives. As a result, planning done by the government falls in vain.
2. Depletion of national resources: Multinational companies are set up with profit motive only. They exploit the natural resources in an unbalanced manner. So it is harmful to the economies.
3. Threat of obsolete technology: Sometimes in the 'technology Kant' process, obsolete technology is transferred as a result of which the diseconomies of scale prevail.
