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.
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;
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.
One thing that is often abused by multinational companies is the perks and benefits offered by host countries. The very largest of these companies can often have huge departments that are somewhat dedicated to strategic planning and extracting value for the sake of the company - not out of some benevolent. Governments in some desperate countries can sometimes be too generous in what they offer to attract them, even paying too much and negating any economic value they might actually bring. Sure they can offer jobs, but if the government pays far more upfront to secure those jobs then it might have been better to foster local companies who might return more success and taxes in future.