A disadvantage of a multinational corporation (MNC) is that it stifles competition and innovation in host countries.
When MNCs enter a market, they often have significant resources and advantages over local companies, which can lead to reduced competition. This dominance can discourage local entrepreneurship and innovation, as smaller companies may struggle to compete with the scale and efficiency of the MNC. As a result, the local economy may suffer from a lack of diversity and innovation in products and services.