A globalized world cannot ignore the impact multinational companies have on economics, politics, the environment, and culture. Corporations have a significant impact on billions of lives every day, and this can often be indistinct and complex. A variety of benefits are available to developing countries through them. The institutions may also carry with them codes of ethical conduct that exploit these nations rather than offer them the essential support for economic growth and social development.

The scale of an MNC’s operation means that its investment will be significant in a country. Large investments are often encouraged through government incentives such as grants, subsides, and tax breaks. We will discuss below how this foreign direct investment will have advantages and disadvantages for the host country. The global economy relies heavily on multinational corporations since they employ a large number of people. They are so influential in politics that they decide where they will locate based on their political influence.

The MNC has the following advantages :

1. Job opportunities:

In low-income countries, where they are located, they can create more jobs as a result of their size.

2. Research and development in the fields of interest:

Companies with rich capital can only succeed in oil exploration because the risks and costs are so high.

3. Maintaining standardization cannot be overstated:

The success of multinational companies is often due to consumers’ desire to buy goods locally.

4. Opportunities for small and medium-sized businesses:

The majority of multinational companies look for local assistance once they arrive in a country. 

1. Multinational corporations, regardless of their size, often focus on profit at the expense of consumers.

2. Multinational corporations avoid tax by relocating their profits to countries with low corporate tax rates.

3. Almost every MNC has cash in overseas accounts. The money is being spent in the wrong places, resulting in a deadweight loss in welfare.

4. Their market dominance makes it challenging for local small businesses to succeed, or even close some of them.

5. Multinational corporations that seek profit often contribute to pollution.

6. As developed economies outsource to countries with cheaper labor costs, jobs have been lost. It could be either good or bad depending on how you look at it.

Multinational companies should consider their social responsibilities, employee motivations, competitors, and customers in line with business ethics. Companies can operate efficiently in foreign countries if they follow cultural practices. The regulations and ethical framework of the countries where they do business should also be taken into consideration. Combining business with ethics seems to be a challenge, based on the discussion. 

Business organizations operating internationally need to respond to social issues, but they also aim to make profits. It is often ignored or given less priority than the public good. Multinational corporations consequently evaluate ethics after considering profitability.