Benefits and Challenges of Multinational clubs (Mncs)

Multinational clubs (Mncs) are not without benefits, which may be to the government, the economy, and the citizen or even to itself. Cole (1996) stated that the size of multinational assosication is enormous; many of them have total sales well in excess of the Gnd of many of the world's nations. Cole also stated that World Bank statistics of comparison between multinational clubs and national Gnps shows, for example, that large oil firms such as Exxon and Shell are large in economic terms that nations such as South Africa, Australia and Argentina are substantially greater than nations such as Greece, Bulgaria and Egypt.

Other large multinational clubs contain normal Motors, British Petroleum, Ford and International firm machine (Ibm). Some of the benefits of multinational clubs are:

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1. There is usually huge capital speculation in major economic activities
2. The country enjoys varieties of products, services and facilities, brought to their door steps
3. There is creation of more jobs for the populace
4. The nation's pool of skills are best utilized and put to use effectively and efficiently
5. There is advancement in technology as these clubs bring in state-of-the-art-technology for their businesses
6. The question for training and retraining and advancement in the people's study becomes precisely necessary. This will in turn help progress the economy of the nation
7. The living approved of the citizen is boosted
8. Friendliness between and among nations in trade i.e. It progress international relation
9. The balance of payments of nations in trade are improved on

In the words of Cole (1996), he stated that the sheer size (and wealth) of multinationals means that they can have a necessary consequent on host country. To Cole, most of the effects are useful and contain some of the above or all. The Electronic Library of Scientific Literature (1996) explained the benefits of Mncs under a system known as 'The system of Externalities'. The system considers the benefits of Mncs from the point of view of those who voice the significance of Foreign Direct speculation (Fdi) as part of the machine necessary for growth. In the contribution of Davies (1989), he gave some theories on the benefits/advantages of multinational. Davies (1989:260) tagged this 'Economic Theory' and the multinational where he took a farranging and necessary look at the benefits of Mncs.

More benefits came along with these people's theories and some are:

1. There is necessary injection into the local economy in respect to investment
2. Best utilization of the country's natural resources
3. They help in strengthening domestic competition
4. They are good source of technological expertise
5. Expansion of shop in the host country

Problems/Challenges Facing Multinational Companies

There is no firm without problems it is facing. Whether an assosication is big or small, there will precisely be some sort of problems or negative factor/influence militating against its survival or continuity. Weihrich and Koontz (1994) states that the doing of multinational clubs needs to be weighed against the environmental challenges and most of the challenges being faced by multinational clubs are:

1. There is usually acute shortage of manpower - citizen with lack of managerial and technical skills
2. The challenge of unfriendly firm environment
3. There is usually the problem of conflicting interest among the three parties - the government, the Mnc and the normal public
4. There may be huge cost of labour in the host country, at least to get the expatriate managers from home country or somewhere else

Conclusively, the above mentioned authors have given all round and farranging note on the benefits of Mncs to the host country where they control and as well highlighted the derivable benefits to the Mncs themselves from the host country. Likewise, in spite of the challenges and the problems being faced by these Mncs, they still continue to survival and waxing stronger.

Benefits and Challenges of Multinational clubs (Mncs)