Merits of multinational companies

1. Quality: it provides and produces quality goods. It produces goods which can satisfy the international customers too. It has huge investment and consists of trained and qualified personnel and specialists. It uses advanced technology to produce quality goods.
2. Mass production: it produces huge number of quality goods to satisfy the customers from all around the world. It must supply the goods constantly worldwide. Advanced technologies are used for mass production.
3. Low cost of production: the cost of production is also low. It produces goods in huge quantity which increases the rate of return and decreases in the cost of production. Low cost of production is the major benefit for multinational companies
4. Employment: it provides employment opportunities to large number of people from all around the world. Most of the host countries can help to solve the unemployment problems. It helps to maintain the living standard of people. It helps in consumer satisfaction too.
5. Increase in government revenue: multinational companies produce and sell the goods in large number of quantities. It earns abnormal profit. Government from both parent and host countries can collect custom duty, income tax, sales tax etc. In that way, government can earn more revenue.
6. Increase in export:  it produces commodities in international standard. They are not produced to meet the needs of local people only. Host countries have the benefit of exporting the goods in other many countries of the world where the company has been or not established. It helps largely in the export business
7. Industrialization: multinational companies help in industrialization. It brings more capital in the business and help to establish industries. It also uses advance technologies to establish industries. It helps in establishment of industries in host country too.

1. Quality: it provides and produces quality goods. It produces goods which can satisfy the international customers too. It has huge investment and consists of trained and qualified personnel and specialists. It uses advanced technology to produce quality goods.
2. Mass production: it produces huge number of quality goods to satisfy the customers from all around the world. It must supply the goods constantly worldwide. Advanced technologies are used for mass production.
3. Low cost of production: the cost of production is also low. It produces goods in huge quantity which increases the rate of return and decreases in the cost of production. Low cost of production is the major benefit for multinational companies
4. Employment: it provides employment opportunities to large number of people from all around the world. Most of the host countries can help to solve the unemployment problems. It helps to maintain the living standard of people. It helps in consumer satisfaction too.

Analytical Industry Which analyses and separates different elements from the same materials, e.g., oil refinery
Synthetically Industry Which combines various ingredients into a new product, e.g., cements industry.

Internal trade is also known as domestic trade, and as the name suggests it is the trade of domestic goods within the confines of the geographical boundaries of a nation. So the buying and selling of either goods or services done within a country is the internal trade.

In such cases of internal trade, there is no levying of import/export taxes or customs duties. Only local government taxes will apply. These are goods domestically produced for domestic consumption only. Now there are two broad categories of internal trade, namely wholesale trade and retail trade. Here we will be focussing on the intricacies of wholesale trade.

• It includes funds available in the form of loans or credit
• It is not permanent source of investment.
• The debts of company are secured.
• No control rests with providers of borrowed funds.
• It is backed by security of assets.

The incentives provided by the government are as follows:

1. Land.: Developed Tots are offered by every state for establishing industries.
2. Power: Some states supply power at a concessional rate of 50%, while some give it free of cost during the initial years.
3. Water : Water is either supplied at 50% concession or is totally free for a period of 5 years.
4. Finance : Small business units are offered loans at a very low rate of interest i.e. 10 to 15% subsidy is given for building capital assets.
5. Sales tax: Exemption from sales tax is extended by some states for a period of 5 years while all muon territories provide full exemption from sales tax. It is also known as Value Added Tax (VAT).
6. Raw material: Units located in backward areas get preferential treatment in the matter of allotment of scarce raw materials like cement, iron, steel, etc.