Advantages And Characteristics Of MNC Or Multi National Corporations

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MNC or Multi National Corporations have branches in other countries and the head office , which is centralised and coordinates global management, is usually located in the home country the company was founded. Some characteristics that MNCs include will be that it involves a large scale of business , Productive organization, ability to transfer technology and evolves in high efficiency.Examples of MNCs include Nike,Cotton on, Mac Donalds & Apple. LDC stands for Less Developed Countries . LDC is mainly identified as Lacking in terms of economy, infrastructure & industry.Some characteristics include that it is low in incomes,there is a lot of poverty ,corrupt government, exports primary good and over depend the primary sector such as agriculture.Some …show more content…
Adidas have both negative impacts and positive impacts just as any other MNC. The company also helped china by improving its products by 6%.This means that more consumers would be willing to buy thus improving the economy. “We believe that only when our people have the proper benefits and resources can they achieve their best” -(Overview of Benefits of Adidas).This means that the employees are provided with their required materials that is needed for conditions to work in.Adidas also gives more choice for a consumer by the assemblage of a variety of choices.This opens up their minds to the world out of their country and be diverse person in cultural aspects and the ability to make life interesting by trying something new.Another benefit that Adidas has brought to China is the new jobs and skills which in return helps the country improve in their economy. “Over 50,728 employees work for adidas world wide in 2013 ”- (Number of employees of the adidas group worldwide since 2000).However MNC especially target LDC as they enforce cheaper labour than the HDC where people have higher literacy rates and know their rights.Due to this reasons, it is evident that MNCs also contribute towards the economy of an …show more content…
However it is claimed that these are “hormone-disrupting chemicals” (Nike, Adidas, Puma, H&M; and Others Found Discharging Toxic Chemicals Into Chinese Rivers).However most people depends on this river as a source of food,water ,sanitation and other basic human needs that relates to water or in other words depends on their primary sector. Over 20 million people in Shanghai depends on the Yangtze river.This means that these people or their offspring will have growing disorders and problems with their livers due to the chemicals “nonylphenol,persistent organic pollutants. & perfluorinated chemicals” (Nike, Adidas, Puma, H&M; and Others Found Discharging Toxic Chemicals Into Chinese Rivers)These chemicals have also proven to damage food pyramid of the river as it harms the smallest creature and when they die the predators eventually die of starvation.The limitations show us how MNCs impact both humans and animals in a negative way in their own

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