MNE goes abroad to further expand on its firm-specific advantage (FSA) t may be built upon product or process technology, marketing, or distributional skills. Second, there are country factors, unique to the business in each country. They can lead to country-specific advantages (CSAs)
MNEs bring foreign direct investment, transfer technology, increase national income, provide more skilled jobs, pay taxes, and otherwise contribute to the overall macroeconomic growth of host economies
They help in integrating the less developed countries in the worlds economic system
They help in the creating financial infrastructure with economic and social development.
In today’s globalized economy companies need to expand internationally to keep a competitive edge as well as financial security that is why Multi National Corporations are created.