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Benefits of TNCs - Coggle Diagram
Benefits of TNCs
For MEDCs
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TNC invest in MEDC, investment boost short-run and long-run economic growth
TNC helps to increase export for host country, improve their BoP and exchange rate(reduce demand for foreign goods)
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TNC builds infrastructures in local( inward investment) will benefits other firms, investment increase lead to rise in AD( multiplier effects)
For LEDCs
TNC invest in MEDC, investment boost short-run and long-run economic growth
TNC helps to increase export for host country, improve their BoP and exchange rate(reduce demand for foreign goods)
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TNC builds infrastructures in local( inward investment) will benefits other firms, investment increase lead to rise in AD( multiplier effects)
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For firms
Can learn skills from TNC, benefiting themselves
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