Mary Chlairre N.

Mujar

BEED I Block 19

GE- 3 The Contemporary World

1. ) Do you think the positive effects of multinational corporations outweigh the

negative effects? Why and Why not?

- Yes, it is preferable if the positive effects outweigh the negative aspects. A global
institution is so important and useful to people that it must have numerous good
qualities. Efficiency is said to be one of the advantages of multinational corporations.
In terms of expertise, multinationals have easy access to their target markets as they
produce in the countries where their intention markets are based, followed by
advancement, employment, and innovation.

2.) What do you think are the ways to lessen the negative consequences of
multinational corporation?

- In my opinion, I think that transfer pricing is an uncommon approach for foreign

companies to increase their profit margins. The goal of this technique is to lessen
their tax liability in countries where their goods are subject to higher tax rates and
upsurge their liability in countries with lower tax rates. They do this by shipping
partially done items and parts between factories in multiple countries. Moving
expensive goods from high-tax countries will improve their profits, but moving
cheaper goods to lower-tax markets will reduce their final tax fee. Due to financial
escape clauses in tax laws, two or more separate countries experience significant tax
losses