---: PRESENTED BY :---

Aa
m
er
S ha
hz
(BC09008) ad
........................ Topic .........................

The Benefits Of Multinationals

 The Benefits Of Multinationals

Skills, Production Techniques And Improvements

In The Quality Of Human Capital

MNCs bring with them new ideas and new techniques that can help
to improve the quality of production and help boost the quality of
human capital in the host country.

Many will not only look to employ local labor but also provide
them with training and new skills to help them improve productivity
and efficiency.

Highly qualified people of Pakistan get recruited in these companies.

Unemployment rate decreased in Pakistan due to the recruitment of

Pakistani people from all over the world.
CONT....................................................

Tax Revenues
For the host country (Pakistan), there is a likelihood that the
MNC will have to be subject to the tax regime in that country.

As a result, many MNCs pay large sums in taxes to the

government of Pakistan.

But in the case of Pakistan, the problem might be that there is

a large amount of corruption and bad governance .

As a result MNCs might not contribute the tax revenue they

could and even if they do it might not find its way through to
the government itself.
 Improvements In Infrastructure

 In addition to the investment in a country like pakistan, in

production or distribution facilities, a company might also
invest in additional infrastructure facilities like road, rail, port.
new buildings and communications facilities.

 This can provide benefits for the whole country. Pakistan got a
lot of benefits in this respect.

 The communication corporations like telenor, mobilink, warid

improved the communication facilities
 Employment Effects:

Another beneficial effect of the MNCS is that they bring employment

opportunities to the host country that would otherwise not be created.

Direct effect arise when a foreign MNC employs a number of citizens.

Many multi national corporations set their industries in pakistan and

recruit the local people, terms of their education and skills.
Balance of Payment:

A country’s balance of payment keeps the track of both its

payments and receipts from the other countries.

The balance of payment effect is an important consideration

for the host country.

When a MNC establish a foreign subsidiary the capital

account of the host country benefits from the initial capital
flow.
Competition and economic growth

Efficient functioning of markets depends on adequate level of

competition between the producers.

When a new enterprise is established, the number of players in the

market and consumer’s choice increases.

In turn this can increase the level of competition in a national

market, thereby driving down the market prices and increasing the
economic growth.
Increased competition in Pakistan tends to stimulate capital investments
by firms in plant and equipment, research and development as the
struggle to gain a competitive edge over the rivals.

We can take example of competition between MITCHELL'S Fruit Farms

Ltd and unilever food products. A healthy competition between them
providing a quality assurance in these products.
Learning of skills

Benefits arise when a local enterprise learns valuable skills from

the MNC’S by its exposure in the market.

A firm can learn about specific superior management techniques,

superior products and process techniques.

Our local people of Pakistan getting knowledge from these

MNC’S about the latest techniques and trends.
Foreign policy
The establishment of MNCs helps in creating the relationship with
different countries in the world.

Thus helps in enhancing the foreign relations.

Due to these economic transactions of goods there is a less fear of War

between the States.

Flexibility can be seen in the foreign policy of Pakistan and India due to
exchange of goods and expanded businesses.
THANK YOU
 ---: PRESENTED BY :---

EJ
AZ
SH
AB
BI
R
(BC09007)
………............... TOPICS ...........................

>>> THE COSTS OF MULTINATIONALS

>>> CONCLUSION
THE COSTS OF MULTINATIONALS

De-Merit Goods
Some companies are producing goods that are not
beneficial for our society and not match with our
mind sets. Examples Includes alcoholic drinks,
tobacco products and baby milk etc.

Repatriation of profits
Profits go back to the headquarters of the
MNC’s rather than staying in Pakistan - the
benefits, therefore, might not be as great.
MNC’s use the local resources of Pakistan
and in return don’t give benefits of that level.
CONT…………………………………………………
National sovereignty
The government of Pakistan is worried that the
establishments of MNC’s is accompanied by some loss
of economic independence. The concern is that the key
decisions that can effect the country’s economy are
made by the foreign parent that has no real commitment
to the host country and over which Pakistan have no
real control.
The source of domination
The MNC’s enjoys the benefit of domination. They
are politically controlling the economy of the
country. They are dominating Pakistani domestic
decisions.
Infant Industries:
The newly established industries suffer a lot due to
the arrival of the multinational companies. They
don’t get the enough time to developed and fully
establish. Before the flourish the conditions
becomes so worst due to MNCs that they wiped
out. Like LAYS the international food brand is so
popular in PAKISTAN that no other local chips
company is developing due to its hype.
Knowledge and Skills Transfer
The multinational companies usually hire the
skilled, trained and professional employees
already working in the domestic companies of
Pakistan. So the knowledge and skills transfers
from these domestic companies to the
multinational companies subsidiaries. Our local
talent is serving these MNC’S
Dumping
The multi national companies tried to
fail the local products by making their
product low price. The best example of
this is Chinese low quality products in
Pakistani market .
 CONCLUSION

Pakistan these days is facing an immense crisis

in political, social and economic drawback,
recently Pakistan is passing through a series of
chronic and painful problems include political,
socioeconomic, energy crises,
security, uncertainty in Baluchistan, day to day
suicide bombing, foreign Drones attacks and
worst situation of law and order in FATA and
NWFP. These all are brain blasting and heart
pinching for all true Pakistanis.
CONT…………………………………………………

Pakistan has been facing many crisis and

problems since the time of its
independence, but today the number of
problems has multiplied to an extreme.
From the basic necessities like food,
clothes and shelter to the security of lives.
In this era of globalization, states have to
interact with each other for social, political,
economics purposes.....

Pakistan have to adopt the things which is

necessary in globalization.

MNCs are not bad itself but the way to use or

utilize it is different.

Some laws should be made and properly

implemented for these MNCs. So that Pakistan
as a less developing country should not deprive
from its rights.
THANK YOU