Sunday, January 17, 2010

Why do multinationals pay a lot more?

As you all know that multinational pay a lot more then any other firm. Further more every person from our class wishes to join multinational. The reason behind this motivation is that people are paid more in a multinational. Here a question arises that why do these multinationals pay more? And a simple answer is that they get more value added work from there employees and as a result earn more. According to a research 60% of worlds GDP are earned my multinationals. On the other hand these firms use 1% of world’s labor.


(The fortune at the bottom of the pyramid) HBR