The Impact of Multinational Corporations (MNCs) on Developing Countries

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Introduction Multinational corporations (MNCs) are huge companies that operate in several parts of the world. MNCs are truly to be global in nature as these conduct tasks with no single national emphasis. These corporations have the ability to stimulate the flow of investment, technology and profits in the countries in which their subsidiaries reside. Multinational corporations are mobile in nature, as they tend to establish companies in countries where conditions are most favorable to their business operations. These corporations provide huge employment opportunities. MNCs mostly try to establish themselves in the developed countries as these corporations are always in a search of better employees and better deals from the host government. Whereas government of developing countries don’t have any other option to improve its foreign direct investment thus developing countries welcome Multinational corporations with best possible deals that country can provide so that the problems like unemployment, growth in all the sectors of the market, stabilization of economy, etc. can be fixed. MNCs have huge role in the development countries. Multinational corporations can provide any country with financial infrastructure for economic & social development. Profits of multinational corporations will be subject to local taxes in most cases, which will provide a valuable source of revenue for the domestic government. Due to Foreign Direct investment, which usually result in employment benefits for the host country as most of the employees, will be locally recruited. MNCs help in filling up the technological and management gap as they recruited employees get proper training on the field as they have to pass through the process of learning by do... ... middle of paper ... ...oices.yahoo.com. [ONLINE] Available at: http://voices.yahoo.com/multinational-corporations-their-effects-developing-385313.html. Multinational Companies in India (MNC). 2014. Multinational Companies in India (MNC). [ONLINE] Available at: http://business.mapsofindia.com/india-company/multinational.html. Role of Multinational Corporations. 2014. Role of Multinational Corporations. [ONLINE] Available at: http://www.trcollege.net/study-material/24-economics/47-role-of-multinational-corporations How U.S. Companies Decide Where To Locate Their Chinese Factories - Julie Irwin Zimmerman - The Atlantic Cities. 2014. How U.S. Companies Decide Where To Locate Their Chinese Factories - Julie Irwin Zimmerman - The Atlantic Cities. [ONLINE] Available at:http://www.theatlanticcities.com/jobs-and-economy/2012/03/how-us-companies-decide-where-build-their-chinese-factories/1412/.

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