1. Definition of multinational company which says that a company which serves more than one country at a time and small description about its background. 2. Main body contains:-
* Description about how multinational corporations give employment and remove poverty. * Role of these companies in enhancing local economies.
* Its impact on globalization.
3. Conclusion- about how multinational corporations are beneficial to the world. INTRODUCTION
Multinational companies have brought revolution in the world. Their role is very significant in our lives. The multinational corporation is defined as an association or organization which provides its services to not only to one country but to many countries of the world. The first multinational company of the world is Dutch East India Company which was established in 1602 by Britishers. The country which has the management headquarters of the multinational company is known as home country which offers its facilities to the other countries of the world. The countries which cherish the services provided by the home country are known as host countries. These countries are dependent on home country for business purposes. Multinational corporations have affected local economies as well as globalization. As these multinational companies deal with countries all over the world that’s why they are also regarded as international companies or transnational companies. These companies facilitate the people of the world with its specialized services and made our lives comfortable. BENEFITS
Multinational companies played a valuable role in the modern society. As multinational companies are growing, they have a deep impact on the economic development of the world. The main reason for multinational corporations to expand in different countries is the cost advantage. Multinational Corporation is able to reach the markets globally. The scale of global investment is controlled by these companies- just 1% of companies are controlling around 50% of investment among the world. These companies influence many aspects of the host countries like politics, economy, culture and environment. They have production and marketing operations in other countries apart from their home base. Good examples of multinational corporations like Toyota, Honda, Dell, McDonalds, etc. The host country improves its productivity as these companies bring new ideas and techniques to catch up with the economic development by raising productivity within domestic competitors and suppliers. These techniques have helped in getting higher productivity. These companies provide special training to their employees to polish their talent which leads to efficiency and productivity. This improves the standard of the human capital. These companies provide the best job and career opportunities at home country and abroad in connection with overseas opportunities. With the rise in globalization multinational enterprises has given shape to the economies in the developing countries. There are many benefits to the world from these multinational corporations. They can easily transfer technology, capital and entrepreneurship to the host countries. They offer many job opportunities to the people all over the world. The main aim of multinational corporations is to bring investments not only to its own country and to other countries as well. This sort of investments gives a boost to both the local economy as well as the national economy. For example, local people provide manpower to the company and thus the company provides employment to them. These companies helps in reducing under –employment in the country by creating new job opportunities to all the people. They played a very significant role in the eradication of poverty as well. In this way, they increased the investment level and thus raised the income and employment level in the host countries. They made greater availability of products for the domestic...