Essay on multinationals

As they are mostly located in urban areas, the MNCs worsen the already existing imbalance between the rural and urban areas as well as contribute to accelerated rural-urban migration. They divert resources away from much- needed food production to the manufacture of sophisticated products catering to the demands of the local elite.

Multinational Corporations (MNCs), also known as Transnational Corporations (TNCs), are enterprises operating in a number of countries and having production or service facilities outside the country of their origin.

The first multinational, appearing in 1602, was the Dutch East India Company. A key concern with regards to MNC’s is their mobile nature. Logically they establish subsidiaries in countries where conditions are most favorable to their business operations. Very large multinationals have budgets that exceed those of many countries.

Introduction Multinational companies are playing something new and introduced a new role in local and globalization, thus, the rising numbers to achieve and strive from emerging companies in world market.