1.Employment Opportunities:Multinationals create large scale employment opportunities in host countries.They increase the investment level and thereby environment and income level.A multinational company offers good salary package and career opportunities to its staff.

2.Advanced Technology: Developing countries are generally technologically backward.These countries have no resources to carry out research and development.The multinational companies bring advance technology to these countries.The advance technology helps the developing countries to improve the quality of products and reduce costs.

3.Foreign Capital: Developing countries suffer from shortage of capital required for rapid industrialisation.Multinational corporations make direct foreign investment thereby speeding the process of economic development.

4.Growth of domestic firms:The multinational companies stimulate the growth of local enterprises.These local enterprises can act as suppliers and ancillary units of multinational firms.

5.Foreign Exchange:Multinational companies help the host countries to increase their exports and reduce their dependence on imports.With this ,they can improve their position of balance of payment.

6.Standard of Living:By providing superior products and services,the MNCs help to improve living standards in host countries.

7.Healthy Competition:Multinationals increase competition.They compel the domestic companies to improve their efficiency to face the competition with foreign companies.Many Indian companies have acquired international quality standards such as ISO 9000,9001,9002 etc.

8.Managerial Revolution:The multinational companies employ modern management techniques and trained managers,several concepts and techniques like corporate planning,management by objectives etc.The multinational companies develop human resources in host countries.

9.World Economy:MNCs help to integrate national economy into world economy.They encourage brotherhood and cultural exchange through international business.