Impact Of Multinational Companies Of First World Countries On Third World Countries

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In this case, a detailed analysis of how MNC’s impact on the global economy is described and an emphasis is placed on the impact of MNC’s on third world countries, their influence on the global politics. Corporate companies working in various countries are referred to as multinational companies. They have their headquarters in their home countries and other offices, factories, properties, industries and facilities in other countries. These are referred to as multinational companies because their activities are worldwide. Its operations are regulated and operated by the main parent company in the home country. Furthermore, their services and products are sold in different countries and need to be managed globally. There are different models of corporations of this kind, such as centralised, regional and multinational corporations. Work on how these businesses have an indirect impact on company law. They have an influence on individual countries and their citizens.

Working at MNC’s

There are certain characteristics of multinational companies. One of the features is their control panel. The key authority is in its headquarters, but each host country has its own offices and administration. It helps to manage the company’s operations. It is also proactive in its marketing methods. It also spends a lot of money on ads, promotion and marketing. That is because their target is the foreign audience, so there is a need for successful marketing. In fact, this allows them to catch and sell goods all over the world. However, the company’s activities are regional and thus have a lot of assets in all the countries in which it operates. In fact, their turnover is high. An example is the Apple Corporation, which has a capitalization of one trillion dollars. In addition, the company has a large amount of wealth and investment. This helps them to enhance companies and their goods because they are able to afford the best available technology. Most of these businesses also spend a lot of money in the technology and innovation sectors to discover and create new high-tech marvels. In fact, most MNCs are run by highly qualified and professional individuals. They are therefore able to aid in the expansion of industry, finance, technology and operations in general. This helps to attract top talent to companies because they have a good reputation and resources.

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The Impact of MNCs on Third World Countries

MNCs have come from strong and wealthy countries in recent years. Many assumed that the countries of the Third World would not be able to catch up. But the global economy has had a strong influence on companies from developed countries. This shows that liberalisation through the World Trade Organization has made a major difference. As a result, a powerful business leader from America, Africa, Latin America, and Asia has the experience of how to exploit opportunities. There are also growing developing global markets. All of them have developed a tradition of organisational competence in terms of labour relations, profits and customer service. However, the political background is very relevant. While they are not regulated by their governments, prospective multinational corporations benefit greatly from state support. However if most companies did not thrive due to incompetence, and not inventing others were able to survive. And they were able to expand quickly when liberalisation was established. Increase in this forthcoming company helps in the policy-making of nations and shapes globalisation.

To order for a company to thrive, it must have creative pricing and goods, smart growth and market entry. However, the goods were ubiquitous and distributed quickly. They will be concentrating on coping with talent problems. In addition, the commitment of the stakeholders should be high. The organisation will be able to consider the needs of its customers. Consumer preferences and patterns, local circumstances, new prospects and competition should be understood. A good business starts in a growing market and then spreads to the rest. For example, a firm may start in Nigeria before it spreads to the rest of West Africa’s markets. Also, in India, a company tends to begin in larger cities before it spreads to the rest. In addition, the organisation should be agile in its growth and launch in the coming markets. In addition, the organisation will consider bringing the goods needed by local customers to the area. The prices of the products should also be pocket friendly to the customers. There is also a need for creativity in order to offer a successful solution to the concerns of the customer. In most developed countries, the infrastructure is weak. It is also important for MNCs to know that brand loyalty is stronger in upcoming markets where the most affluent purchase products at a high rate. In addition, a company should invest in expanding its distribution network in rural areas where the infrastructure is weak.

Problems affecting the global economy

To order to sustain competitiveness, most globally-oriented corporations are widening their activities and businesses around the board in all countries. This is also attributable to the growth of the borderless economy. The number of these companies is therefore growing at a high rate. Thus, if possible, there is a need to manufacture end-user products close to the local market. This helps to meet the needs of their customers, reduces shipping costs, minimises energy consumption and generates employment for locals. As a result, its role in society as a whole must rise dramatically. Political intervention has severely distorted the world’s economy since the Cold War. As a result, the US government and Japan intensified trade frictions that were politically driven. By establishing a friendly relationship and by fostering a strategic alliance. Global partnership intervention and interdependence rivalry at corporate level is an important aspect of the global economy. This also helps to increase the efficiency of the industry. For a long time, Scientist has appreciated the calmness of alliances and international communications. Unfortunately, however, because of security reasons and national economies, engineers have faced a number of challenges.


Besides, the relationship between these two experts should be strengthened in order to increase the efficiency of R&D in the future. It will help to solve much of the challenges and improve human race longevity. Most large companies are working hard to ensure their survival. They can not reside considering only their home country and their own desires, so they must also consider the host regions. They do need to establish a stronger relationship between science and engineering in the locality. In addition, technical growth and strategic market arrangements are key. R&D collaboration between all nations around the world will help to address global environmental problems such as the protection of rainforests, global warming, AIDs and acid rain.

In addition, the technology and research markets should be globalised in such a way that the needs of consumers can be addressed. The latest technical progress, which is highly market oriented, is experiencing rapid change. It is of an international, interdepartmental, interdisciplinary and inter-industrial nature. In order to survive, these companies are forming strategic alliances across borders. They are so solid that the political pressure of a nation cannot sever this kind of alliance. In addition, these agreements help to promote peace internationally and strengthen international partnerships. This century has seen an increase in the invention of technology, which means that this technology needs to be implemented effectively. This will help to overcome the many challenges facing the world so that sustainable growth can be accomplished. Social networking and new technology are helping to thrive in developing markets. To order to thrive in the coming markets, therefore, a business should be bold innovators, agile and have good knowledge of local requirements and understanding.


There is still the globalisation phenomenon, which involves two interlinked processes, such as the change in productivity and collaboration and the change in programme allocation. This means that the productivity of the firms has been lost due to the erosion of customer buying power and weak business demand induced by economic imbalances. While trade liberalisation is taking place, the new power of customer preference, the decline in defence spending and the shift in the pattern of consumption of buyers are struggling together with the expansion and development of the sector. Corporations are very interested in creating new competencies and approaches to resolve the losses they have suffered during the recession. As a result, their primary emphasis is on advertisement, product creation, the development of new marketing campaigns and a range of promotional initiatives to draw global buyers. It also investigates approaches that are cost-effective and that can have a positive impact on the earnings of businesses. However, they will help to reach the company sales goal. This is why training needs, the growth of the workforce and the transformation of the company are required to meet its needs.


Multinational companies are important because they promote innovation, particularly when they combine ideas and expertise between foreigners and local workers. This promotes technological development and modernisation in the developing countries. In fact, the various raw materials available in different countries are used in innovative ways to improve the company’s already existing product. This means that the raw materials available locally in the developing country are well used. Also, the MNCs have massive resources and thus the investment they make in the host countries is big. They are therefore in a position to facilitate the rapid growth of industries through joint ventures, subsidiaries, factories and branches. Multinational companies are fostering the economic independence of their host countries. This is because the country decreases imports of products as its exports increase. The advantages of MNCs are recognised not only by the host countries, but also by the home country. For example, the country is in a position to collect revenues that are very beneficial to the growth of the country’s economy. The nation also receives taxes, fees, fees and royalties from all the countries served by the company. MNCs also promote good foreign ties between developing countries and developed countries. There is also bilateral trade between the host countries and the company’s home country. This partnership benefits both the underdeveloped and the already developed countries, and therefore improves the global economy and the market.


There are many explanations why businesses all over the world strive to be multinational corporations. Second, it is inexpensive in terms of the cost of production. This is often the case when businesses chose to continue the manufacturing cycle in developing countries. They are able to access labour and raw materials cheaply. This data is then used to make the companies stronger. Corporations are also able to escape tariffs and import limits when they produce and sell products in the same region. Generally, the small expenses incurred save a lot of money, which motivates many businesses to be multinational corporations. Many advantages in terms of economic development and diplomacy are also recognised by multinational companies. They are stimulating growth in countries that are set up in various ways. For example, businesses recruit and hire local residents of the country and often give better pay than domestic companies. Local taxes paid to the government also lead to economic development.

MNCs do have a few demerits, given the various advantages. First, the company is profit-oriented. Consequently, its interests may not always be in line with the interests of the host country and could therefore harm its economic development. Some MNCs may be monopolies or may even trigger monopolistic rivalry in their host countries. This limits friendly competition between the client and domestic firms. Some MNCs can also transfer all profits received back to their home country as income and charge high fees to the host nation. This leads to a foreign exchange outflow that is harmful to the home nation of the company. Some MNCs often escape heavy taxes by using tactics such as transfer pricing. While multinational corporations were largely formed on the basis of global economic growth, they have also had the ability to influence politics. MNCs have been shown to guide the path in which the host country is going, either forward or backward. It is also focused on the democratic structure of the home country. Policies are slowly turned over to the host nation, and if, for example, a company becomes a monopoly, its presence has a significant effect on the home country of the company. In addition, the host country’s political governance could have an impact on multinational corporations in the country and would have prevented aspiring corporations from setting up companies in the country.

Global politics also explains why some countries and regions are in favour of hosting MNCs, while others are not. Multinational corporations sometimes leave some of their host countries. This may be due to political turmoil in the region, which has resulted in successive losses to the company. International corporations are also easily manipulated by the government to promote the value of the state’s currency. This is especially the case when there are coalitions between nations in which the stronger country wants its monetary value higher than that of the other countries. In general, multinational companies play a major role in the global political economy, despite the few setbacks that result from their creation.


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