Essay on Multinational Companies

Topics: Multinational corporation, Developed country, Economic development Pages: 4 (1007 words) Published: October 5, 2013
Multinational companies are giant firms with their origin in one country, but their operations extending beyond the boundaries of that nation. For reasons of marketing, financial and technological superiority, these multinationals are generally considered as a sine qua non of the modernisation of an economy.

They have been responsible for the rapid economic liberalisation in India in 1991, the question of the entry of multinational corporations (MNCs) has assumed significance.

Multinationals corporations, mostly from the United States, Japan and other industrialised nations of the world, have en­tered our life in a big way. Foreign investment proposals and commercial alliance have been signed on an unprecedented scale, thus giving rise to the controversy whether these multinational corporations are our saviours or saboteurs.

This is so because of the vital difference between the economies of developed and developing nations. This requires that the entry of multinational corporations in India be examined from this angle.

According to A.K. Cairn cross, “It is not possible to buy development so cheaply. The provision of foreign capital may yield a more adequate infrastructure, but rarely by itself generates rapid development unless there are already large investment opportunities going a begging

That is why the intervention of multinational corporations is imperative in the context of the economic growth and modernisation of developing economies where ample investment avenues lie open and yet due to lack of capital and technical know-how, these potentials remain unexploited.

Multinational corporations help in reorganising the economic infrastructure in collaboration with the domestic sector through financial and technical help.

If we consider the case of our country immediately after Independence, ours was an agrarian economy with a weak industrial base and low level of savings.

“Though the public sector was supposed to cure these ills,...
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