MNC: Multinational corporations.

Multinational corporations can be said to be a business organization that deals and operate in two or more countries; having its headquarters mainly in its home country.
Simply put, it’s a business that operates and has offices in more than one country.

What makes a corporation multinational?
It must have operations and should maintain offices and assets in countries other than it’s home country.

These are some features of a multinational corporations;
1. They operate and conduct business internationally and keeps branches in other countries
2. They have and keep huge and large assets; both physical and financial
3. It must have a coordinated network of branches
4. The parent company should have indirect control on the activities of the branches
5. Being a large corporation, they’ve got access to new and top notch technology
6. They employ the best trained managers with the right skill best suited for the job

It’s impact on developing countries.

Multinational corporation would argue that with their presence in developing countries, they’re actively enabling investment opportunities and economic development in these countries hereby greatly creating employment opportunities.
There are merits and demerits of MNCs opening shop in a developing country. Here are some;

Merits
1. Employment opportunities: This is an undeniable fact that MNCs bring with them job employment for the host country, employing about 70% of its workforce from the local populace

2. New tech, ideas and innovation: Being a large and already established corporation, thy would have the best of technology and new innovations that they would bring and ultimately pass down to smaller local businesses

3. Growth: With its massive investments that would include infrastructure development among others, the host country would grow economically.

Demerits
1. Exploitation of cheap labor: MNCs, being attracted by the cheap labor they could get at the developing country make sure to exploit the Human Resources and pay little wages.

2. Pollution to the environment: MNCs discard their waste materials improperly, polluting the environment. Without the regulations and/enforcement on proper waste management, MNCs mostly get a pass or the government turns a blind eye to the pollution and improper waste management practices employed by the MNCs.

3. Threat to local small businesses: MNCs, being large and already established is a viable threat to small businesses as they’ve got the capital and assets. And if unchecked, they could monopolize the economy and ruin other small and upcoming businesses.

4. Exploitation of natural resources: These large corporations massively exploit both human and natural resources as most of the profit generated from doing business in the host country goes directly back to the parent country

5. It can get difficult for a healthy competition as small business obviously can’t compete and overtime, dependency on the goods produced and services rendered by the  MNCs would grow leaving no room for small local businesses.


Whatever perks multinational corporations bring to its host country, we shouldn’t forget in a hurry that these corporations aren’t a charitable organization, with its primary aim is profit making and returns to its shareholders.
With grants and/low tax rates given by the host government to attract these corporations, coupled with the idea of low wages and a higher profit motive, these corporations wouldn’t be there if they thought they couldn’t make profit.