Q.Explain any four merits of MNCs to home country.

MNCs benefit their home country (the country where the parent company is based) by bringing back foreign exchange, creating jobs and business for home-country firms, opening new foreign markets for home products and technology, and raising the home country's economic and political standing in the world.

Merits of MNCs to the Home Country

• Inflow of foreign exchange: The profits, dividends, royalties and technical fees earned abroad are remitted back to the home country, improving its foreign exchange reserves and balance of payments.
• Employment and career opportunities: MNCs need managers, technicians and skilled staff for their foreign operations, creating well-paid jobs and global careers for home-country citizens.
• Wider markets for home products and technology: By operating abroad, MNCs create demand for raw materials, components, machinery and technology produced in the home country, boosting its exports and industries.
• Growth and global influence: Expansion into many countries increases the size, profits and reputation of home-country companies, and enhances the home country's economic strength and influence in international affairs.
• (Additional) Return of advanced know-how and management experience gained abroad also strengthens home-country industry. …