The Role and Impact of Multinational Corporations in the

3677 Words Jun 4th, 2011 15 Pages
The role and impact of multinational corporations in the world economy. Introduction: Looking around. Before we will start our topic under consideration, let me draw generalized picture form our everyday lives. Imagine that you are coming back home from your lovely work. You are driving your Volvo car of 2002 model year, during this you are talking with your darling, by your new Nokia N97, and she promise to be at home after one hour and cook for you dinner. After 20 minutes you are at home, you need something to eat before your darling cook for you. You are so hungry, and you open fridge and find there your favorite “Nutella”, you decide to make some sandwiches with it, after that you take “Dynamisan” vitamin, and then you go to the …show more content…
Also investments by MNCs in future can increase the level of overall domestic investment, what again can give impetus for more rapid growth and development of developing countries. Moreover, investments which are made by MNCs can be both capital – investments, which are not always safe, and fixed investments, i.e. factories or plants and these in turn cannot be easily removed from the country, ipso facto creating debts’ problems and it is also is quite crucial for developing countries, because later will not produce boom and bust cycles. What is more, establishing and investing in local affiliates, MNCs does not raise host countries external indebtedness. In addition, MNCs are also investing in physical as well as human capital. What also can be quite important for development and growth in developing countries, because investing in technology and knowledge (for instance, managerial experience) MNCs developed it and in future it can be transferred to the indigenous firms. Moreover, when MNCs enter domestic market in order to implement its global production strategy and investments are made as the part of this strategy, the local affiliate and domestic firms that supply this local affiliate, are becoming integrated into one global chain, what is opening for them new export opportunities and as corollary new impetus for economic growth. Plus according to the previous research
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