When multinational companies locate in the host countries they might cause the small firms of that country to go out from the business. They may drive away the small firms. They may even cause negative externalities such as pollution, congestion, destruction of natural and historical sites in the country, unemployment of locals and sometimes it may … Read more

The advantages are: Cheap labour. Low cost locations. Tax cut from the government of the host country. Availability of cheap raw materials. Government subsidies. Cheap transportation costs.