There is both positive and negative impact of Multinational Companies (MNCs) on employability. According to the Educalingo website, employability refers to a person's capability for gaining and maintaining employment and also to engage or make use of the services of an individual in return for money. Employment Creation is one of the major benefits for the people in the host country where the MNCs are operated.
Employment creation is considered the most important factor that inward FDI has expected to contribute to the host country. The employment opportunities are provided by Multinational Companies (MNCs) directly or indirectly. According to the various pieces of literature available on the internet, a significant base of buyers for those goods and services is needed for demand to grow. As they have insufficient money for the job creation fails if the principal consumers refuse to buy and also if they feel economic pressure, they borrow less. In developing countries, employment creation is predictable to come from regressive connections by the involvement of most interactive relationships.
The positive impact of Multinational Companies (MNCs) on employability:1. In the host country, there is a provision of significant employment and training to the labor force. There is a possibility of good job creation and the unemployed workforce gets the opportunity to work for a good company.
2. Multinational Companies (MNCs) extend consumer and business choice in the host country. The consumer gets products and services at a competitive price as compared to the imported ones.
3. To develop the quality of the host labor force, there is the transfer of skills and expertise that helps in building a great workforce with greater productivity.
4. There is the chance that with local traders and through capital speculation, and their spending Multinational Companies (MNCs) add to the host country Gross domestic product (GDP) which is the broadest quantitative measure of a country's total economic activity.
5. The profitable Multinational Companies (MNCs) are a source of significant tax revenues for the host economy.
The negative impact of Multinational Companies (MNCs) over employability:1. Some domestic businesses might not be able to compete with Multinational Companies (MNCs). As a result, the domestic business may collapse.
2. When MNCs continue to expand into the less developed country or the developing country, they reduce cultural diversity in the host country.
3. The profits which are earned by Multinational Companies (MNCs) may be remitted back to their own country. All the earnings are sent to the home country.