The advantages of being a multinational corporation is,
- Expansion into new markets
- Creation of a trade surplus
- Lower tax payments
The advantages of being a multinational corporation are following,
- Specialisation in production. BMW produce engines in Germany, import tyres from Asia and then have plants assembling cars in many different countries, such as the UK.
- Outsourcing. A manufacturing firm in a high-labour cost economy can outsource the labour intensive production to cheaper labour cost countries and enable a reduction in costs.
- Tax avoidance
- Employment of skilled labour
- Wider consumer base.
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