Impacts of a Large Corporation on a Developing Country - Case Study Example

The impacts of the TNC Significant developments have been recorded in the foreign direct investments by the transnational corporations since the 1980s with the TNCs taking different forms (Lundan, 2011, p.... They benefit the home country as well as the host nation in terms of revenue through inflows and outflows.... The transnational corporations have large revenues and can exercise more power than the individual states across which they operate....

How Globalization and large Corporations Affect Small Business.... As a result, numerous studies have been conducted to point out the exact effects that in deed globalization and large corporations have impacted especially on business (Sachs 66).... It is imperative to note that large corporations more often have had a bigger and stronger financial muscle than small businesses making them enjoy many advantages unlike small business.... Representatives from East African chamber of commerce stated that because most businesses and industries in their regions are young and unstable, the stiff competition brought about by globalization and large corporations put their industry in the risk of collapsing....

Multinational corporations are large industrial corporations with a wide network of branches spread out in a number of countries but managed from one country.... The characteristics that distinguish multinational corporations from other organizations are: they are located in many countries, their worldwide activities are centrally controlled by the parent company, and they are large in size.... They contribute to both positive and negative impacts on economies involved in international business....

It can also enter into a partnership with a local organization in a given country to execute its operation.... The country of origin of the MNC is referred to as the home country whereas the country where the MNC establishes its foreign investments is referred to as the Host nation.... The availability of resources and lack of competition in the developing countries also contribute to the globalization and international trade that are witnessed currently....

For the purpose of this paper, the focus is narrowed down to China one of the fastest-growing economies and a developing country in East Asia.... This is due to the basic facts that the economy of the country is dependent on the political stability and the relative support from the political system.... This is due to the basic fact that the economy of the country is dependent on political stability and relative support from the political system....

Specialization results in inefficiency in production because the least possible amounts of resources are used in the production of a unit of a product due to the fact that they have a comparative advantage over other businesses especially those in developing countries.... The paper "Consequences of Multinational Corporations " presents detailed information, that a multinational corporation is a corporation which has extended its operations in different countries globally and engages in direct foreign investment (Spero & Hart, 2010)....

MNCs have substantial property and assets in more than one foreign country and benefits from the operations of the conglomerates.... MNCs coordinate policies and rules that perfectly balance the requirements and aspirations of the parent country nationals (PCNs), third-country nationals (TCNs), and the host country nationals (HCNs).... he fairness increases the motivation of the employees in the global corporation's network hence the development of the international economy....

ultinational Corporation is a corporation that operates in more than one country.... The management is commonly done in one country while services provisions and other production processes are done in at least more than one other country.... As a result, they own and operate assets in more than one country outside their parent country in which they are incorporated and have their head offices.... In most cases, it is an international strategy to outsource labor and other economic resources in a bid to maximize the parent corporation's goals and objectives....