Describe the role of multinational corporations in the global business environment
Multinational Corporations play several significant roles in global business. Besides, they contribute highly to the advancement of the world’s economy. Multinational corporations have, for quite an extended period, served as a growth engine in several host states. They offer inflow capital to the developing nations in the form of materials as well as dollars; for example, the finances for industry building and construction are counted as a capital flow on the financial account of the balance payments. The capital investment enables the state’s economies to develop as well as increase its productive capacity. Multinational corporations help a developing host country by increasing venture, income, and employment in its economy. An increase in investments within a nation raises the inflow of money and hence economic activities among people due to the high circulation of money in the society. This, therefore, means that employment opportunities will increase in a specific country.
They contribute to the rapid process of development of the country through the transfer of technology, finance, and modern management. The regions where these factories and industries are located to gain the advantage of infrastructure development and public amenities like hospitals. Multinational corporations help in promoting exports of the host country. Production of the country’s raw materials means the value addition of the products, which in turn fosters the nation’s exports. The growth of multinational corporations creates a positive impact on the business environment in the host country. Multinational corporations integrate national and international markets. Their growth in these days has remarkably influenced economic, industrial, social environment, and business conditions all over the world.
Cori Donton
Multinational corporations, as you said, are firms that are operational internationally. They help balance the economic development in the entire world. This is through the creation of employment in the host countries. Besides, these firms make it possible for the states to achieve value addition on their products and hence promoting their export market. They interlink the internal and external markets by promoting trade between countries through their operations. These, in broader perspectives, advance the global economy and hence improve the living standards of people. The lives of people around these firms improve as infrastructures, as well as public amenities like hospitals and schools, and administrative posts such as police stations are brought near them. They make commercial activities orderly and efficient in the world economy by ensuring relative uniform development among nations through their actions. The growth, therefore, is attained in the developing as well as developed countries. This reduces instances of stagnation of various parts of the world in development terms.
Allison Marchioni
As per your statement, multinational corporations are available all over the world and have a development impact on the entire global society. Their influence is felt primarily by the host countries. First, they provide employment opportunities to the surrounding communities, and besides, they develop the area of their operation. This is a more in-depth insight that increases the inflow of money with a country, and hence economic developments within the particular state. Once a country becomes economically stable, it gets the power to participate in the international market. The multinational corporation, therefore, promotes international trade among nations. One way that they ensure this is through enhancement of the country’s export through value addition. The firms provide an avenue for innovative ideas as a given country tries to be competitive in the international market. New products are thus made available in the global economy, and people’s lifestyles are advanced. The firm as well introduces new approaches to production within the host nation, which leads to technological advancements and business in a particular state. This comes with the advantage of employment opportunities among the citizens of the given country. They thus provide balance in the economic development of regions in the world.