The gross attainment of independence of the States now known as Third World countries in the 1960s and 1970s, the attendant political instability and the quest for technological development to have a place in the global economy made investments by Multinational Corporations (MNCs) across the globe a piecemeal. In other words, these created interstice for economic niche, which now serves as the mother of intrusion in the governance of countries of the Global South. This was not also unconnected to availability of large mineral deposit and vast market opportunity, which the Third World countries ostensibly offered.
Starting from the 1980s, globalization has become an irresistible historical trend. The expansion of multinational corporations, as the forerunner in this process, has been presenting a continued momentum. Africa and other Third World countries are considered by Western multinationals as the “last frontier for investment” among the emerging markets in the world and foreign direct investment. Multinational corporations operate with impunity in many Third World countries. The intrusion of multinational corporations in the development of the Third World can be viewed from different perspectives, either as the engine of development, or agents of imperialism.
This paper examines with relevant examples, the intrusion multinationals nations of the Global South in other to understand the relationships if parasitic or otherwise this relationship has been to the host and home country of multinational corporations. In other to cover the major issues involved in this work the major concepts would be clarified. Furthermore, the political, economic and social issues bordering on multinational corporations activities in Third World nations would be examined in other to buttress the validate the fact that multinational corporations have penetrated the governments of poor nations of the Southern hemisphere in a manner that have stalled development. Consequently, in other to view the issues involved holistically, the positive and negative impacts of multinationals would be examined. CONCEPTUAL CLARIFICATION
Multinational Corporations are today at the center of globalization, homogenization and growing interdependence of the world economy. A company becomes a multinational enterprise when it begins to plan, organize and coordinate production, marketing, directing and staffing from a central source to branches of such corporation across countries other than the home state. The operations outside the company’s home country are linked to the parent company by mergers operated as subsidiaries or have considerable autonomy. Multinational Corporations are sometimes perceived as large, utilitarian enterprises with little or no regard for the social and economic well being of the countries in which they operate1. Hence, the activities of multinational Corporations transcend beyond national boundaries. They wield immense financial powers and capable of influencing political, economic, social and technological policies on a global scale. Third World is a term used in depicting poor nations of the Southern Hemisphere. The term can be used interchangeably as South/South or Global South. It is a term used to designate an economic sphere; it symbolizes less developed countries and most of these countries are in Asia, Africa, Oceania’s and Central and Latin America. The concept of the Third World serves to identify countries that suffer from high infant mortality, low economic development, high levels of poverty, low utilization of natural resources, and heavy dependence on industrialized nations. They tend to have economies dependent on the developed countries and are generally characterized as poor with unstable governments and having high rates of population growth, illiteracy, disease and also a very large foreign debt.1
In other to understand the symbiosis of Third World nations and MNCs, it is important to...