The Impact of Multinational Corporations on the Global Economy

This essay examines the benefits of multinational corporations' global expansion on the global economy. It defines global business and multinational corporations, highlighting the role of foreign direct investment in contributing to capital, technology, and human resource utilization across cou...Read More

GLOBAL BUSINESS

TABLE OF CONTENT
 Introduction
 Does the global expansion of multinational corporations’ benefit
the global economy.
 Conclusion
 References

INTRODUCTION
Global business is undertaken as the firm which performs facilities
(like factories and distribution centres) into various countries
across the world. Moreover, this is distinct from an international
business that sells goods all over the world but have services only
into its domestic country. In simple term, it is mainly considered
as the international trade whereas entities perform across the
world.

DOES THE GLOBAL EXPANSION OF MULTINATIONAL
CORPORATIONS’ BENEFIT THE GLOBAL ECONOMY
Yes, the global expansion of multinational corporations is beneficial
for global economy. Multinational Corporation is undertaken as
one which operates their business into one or more countries.
Moreover, these firms are often managed from as well as have a
central office headquartered into its domestic country, but with
offices all over the world. In addition to this, multinational
corporations presently have very vital role to play within all
countries, economies and global economic relations that turns
into a maximisation of essential problems for government.

CONTINUE…..
By foreign direct investment, MNCs may bring substantial gains
towards both domes and host states through contribution towards
effective utilisation of capital, technology and HR all over countries.
So, it plays crucial role into development of economic prosperity as
well as social problems. Some benefits of MNCs expansion for
global economy are discussed below:
 Multinational Corporation facilitates employment
 Multinational companies develop consistent customer experiences

CONTINUE…..
 Multinational Corporation facilitates employment
If they goes outside of developed economy for a moment, the
average individuals that performs into agricultural relation
position. Additionally, around 70% of jobs identified into the
non developed countries of world which depends upon
particular sector, in comparison to less than 5% that situated
into wealthiest countries. In addition to this, multinationals
come in and provides high wages thereafter it is helpful in
moving towards their living standards.

CONTINUE…..
 Multinational companies develop consistent customer
experiences
Multinational perform from a centralised structure that states that
there is a key desires which all assets would seek as well as
performs. Even though McDonald’s facilitates various items in UK
than into US, the core values of firm are still upon their displays.
So, it has been that represented a same interior, procedure of
ordering a set of effective practices that followed at both areas.

MNCS EXPANSION ALLOW FOR EXPLOITATION
OF LESS DEVELOPED COUNTRIES.
However, it is also true that if MNCs are helpful in global economy
develop which indirectly and direct indicates that Multinational
corporations allows for exploitation of less developed countries.
As multinational corporations minimizes government
dependencies within developing world. Since 2000s, the
dependency upon international aids throughout African continent
is thought to be accountable for whole weakness of local
economies. Few countries based upon global assistance for above
40% to initiates developing the amount of trade that incurs into
developing countries.

CONTINUE…..
The present trade level for Europe is at 60%. Additional North
America experiences about 40% trade level, where as
Southeast Asian Nation attain 30%. Also, the present level of
trade for African countries, though, is just 12%. The
multinational firms could enhance this rate into developing
world through up to 50%.

CONTINUE…..
Multinational corporations facilitates an inflow of capital
Various multinational corporations have its headquarters within
developed world. Moreover, it depends upon mature markets
resources for maintaining its supportive revenue streams.
Additionally, these entities should shifts in developing world
for gaining profitability by investment that made there.

CONTINUE…..
In addition to this, multinational are driving source of capital
inflows towards developing world, making factories, investing
into training centres and assisting educational services with
aim of developing its productive capacities overseas.

CONCLUSION
As per the above presentation, it has been concluded that global
business plays a vital role into world-wide competitive market. As
the global business drives organisation towards higher level
competition within business that enables them to formulate lower
cost items with higher quality products for customers. In addition
to this, multinational corporations presently have very vital role to
play within all countries, economies and global economic relations
that turns into a maximisation of essential problems for
government.

REFERENCES
 LeBaron, G., 2021. The role of supply chains in the global
business of forced labour. Journal of Supply Chain
Management, 57(2), pp.29-42.
 Mehta, K. and Shah, V., 2019. Global business: Virtual
workplaces and collaborations. International Journal of
Business, Humanities and Technology, 9(4).

THANK YOU