Essay on Multinational Corporations : Mncs Or Transnational Corporations

Essay on Multinational Corporations : Mncs Or Transnational Corporations

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Multinational corporations also called MNCs or transnational corporations, it is a registered company that operates in multiple nations. “A multinational is a firm has its headquarters in one country and branches, manufacturing or assembly plants in others. In other words, it is mot just an exporter. It has business operations in several countries.” (Surridge, 2014)
To be more simply, any company that gained a quarter of company’s revenue comes from domestic are called multinational corporations. These are firms that practice corporate ownership beyond national borders. Through managing and production of goods, services and the proper allocation of resources in more than one country. There can be divided into two main types to describe an MCN (multi-national-corporation), most MCNS are running from headquarters in one country, with their facilities running in other countries. Another type of operations running is with the Parent company running in one country whilst having subsidiaries running globally. In more recent times, multinational corporations have grown in power and visibility, but have come to be viewed more ambivalently by both governments and consumers worldwide. Indeed, multinationals today are viewed with increased suspicion given their perceived lack of concern for the economic well-being of particular geographic regions, which leaving the public impression that multinationals are gaining power in relation to national government agencies, international trade federations and organizations, and local, and international labor organizations.


There are plenty of advantages that MNCs bring to others countries, the corporations may impact the host countries a lot, the corporations may bring abundant technological...


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...p the host countries reduce poverty and dependency. Although much of the gains are again lost through transfer pricing to the main branches of this MNCs in the developed countries. The research also found out that many of these MNCs do have a multiplier effect towards poverty reduction through their contribution to relevant schemes like the Red Cross scheme and other social corporate responsibilities. It is generally accepted that MNCs bring more advantages than disadvantages, the MNCs help the development of local society. Moreover, the corporations in developing also provide the convenience for people’s life. It brings the advance technology and machine to the host countries. In addition, the MNCs in the host countries also have promoted the exchange of the national culture. To sum up, the multinational corporations has a positive influence on developing countries.

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