What Is The Impact Of Multinational Companies In Developing Countries

Decent Essays

Transnational corporation is a large company that has their head office in one country and subsidiary offices in others, normally developing countries. McDonalds, Coca Cola, Nike and Apple are few examples of transnational corporation. However, there has been much conflict between different transnational corporations due to the competition. These corporation normally establish their manufacturing unit at developing countries which helps them to maximize their profit. This report is focused on the impact of transnational corporation on the economy of the developing country. Developing countries are poor countries which have a low standard of living and have disadvantages to those in developed countries.
The Globalisation Process
Globalisation is the process of interconnecting people, companies and countries as a result of economic trade and cultural exchange. Due to globalisation, the production of goods and services has increased (at a larger scale) in large scale. The large companies of a country have grown to be multinational companies establishing its subsidiaries in different countries to generate more wealth. Economic and cultural globalisation are different types of globalisations. Economic globalisation involves interdependence of the world’s economics which can be expressed in the flow of goods, services, capital, technologies and information. It involves reducing or removing barriers that come across the free movement of trade, investments and

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