First, it is mostly argued that multinationals can obstruct the economic growth and development of the developing countries by taking local capital rather than providing new capital such as conducting…
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For example, the improper use of baby milk formula by Nestle in some developing countries raised the question of low quality production. These profits are usually repatriated instead of reinvested locally that can cause hindrance in host country’s growth. The multinationals are also seen to diminish the competition in the developing countries. Besides this, multinational corporations are also seen to intervene in developing countries’ political processes in order to further their corporate interests. For instance, many MNCs have been alleged in the involvement of overpowering the Chile’s President Allende. For this, they can use their resources in legal or illegal activities. In this sense, multinationals are not different from local corporations but still have different characteristics that are basis for criticisms.
Multinationals corporations can help in improving the structure of the economy by bringing in foreign direct investments which is a much needed resource in developing countries. Technology is brought in the host country because the existing technology might not be efficient for production. In this way, developing countries can have access to better and efficient technologies. Besides economic gains, multinationals can also have a positive impact on the welfare of developing countries. Jobs would increase boosting national economy and resident income. Increase in income will lead to increase in tax bases and increased government expenditure. For example, investment of information technology in India has led to increased income of residents and increased capital expenditures. Positive impacts of MNCs can help developing countries rise in the
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In fact most of the developing countries are not able to develop properly; not because of the lack of resources, but because of the internal constraints it may face from religions or races. Pakistan and India are two developing countries in Asia and both of them have similar internal resources.
The article emphasizes on the fact that empowering women in developing nations would be a major contribution towards economic, social and intellectual development and hence it is one step that is going to take a major leap in the development of the nation as well as strengthening the nation in all aspects may it be family or the outer world, if women are aware and educated they are going to rear and nurture the children well and thereby a step ahead in the growth process.
In fact, it was likewise argued that globalization and the liberalization of trade has been likewise creating not only opportunities but other consequences as well in the less developed countries. Apparently, because of the popularity of trade, much has to be done with the developing countries (Ferrer 2008).
These capabilities have led the globe towards scientific and technological innovations and advancements, where the entire population of the world is able to communicate and travel promptly within no time.
Internet can be simply defined as “an international network of millions of computers that allows you to access and transmit information” (Price & Wix, 2002, p.1). Evidently, Internet has become an inevitable component of modern life and people belonging to all classes use infinite applications of internet frequently.
The company that is the subject of this research is Wal-Mart As the largest retail store in the world with more than 20% market share in the United States of America only. Research shows that the success story of Wal-Mart actually starts with the perfect utilization of the core components of retail internationalization.
It manages production and/or delivery of services in more than one country. These corporations are very powerful and some do have revenues, profit and budgets that exceed the gross domestic product (GDP)'s of the host countries hence have a powerful influence on world affairs and on globalization.
conomy intensified the political, social, cultural and economic relations which somehow reverted the world into transcendental homogenization where major global economic traders work. This research will explore about the lives of multinational corporations and its consequences
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