Mncs As A Force For Development Essay Example | Topics and Well Written Essays - 2500 words

Mncs As A Force For Development - Essay ExampleThe unprecedented increase and expanding upon of multinational corporations has seen increase of interest among the media, scholars and the public who build explored the subject. Multinationals are deemed as key instruments in maximise economic welfare across the globe while in otherwise aspects they are deemed dangerous agents of economic imperialism (Ietto-Giles 2012, p. 33). These are issues and basic facts that sacrifice been examined by different scholars using different theories and have had different views and conclusions through and through different opinions and ideologies. Growth in multinational enterprises has been associated with growing in gentlemans gentleman economies through development of technology, entropy and communication as well as distri exclusivelyion of re get-gos across the globe (Buckley 2009, 132). Multinationals have also been deemed lively in creating employment in the world merchandises and enha ncing economic development in the economies where they have invested. However, these positive aspects have not been free from the viable perils that come with foreign investments and growth of multinationals. For instance, growth of multinationals in third world nations has been associated with the uneven development this has mainly risen from overpricing of technology (Rodriguez-Clare 1996, p. 852). Aim of the vignette The main aim of this study is to explore the growth in multinational corporations and their spread across the world, with a view to examine the finish to which they are a force of development and progress. The study will explore the current dash in multinational corporations and identify how the growth has been associated with economic development and progress. The study will also examine possible perils associated with growth of multinationals. This will help identify whether the positive results of multinationals growth far outweighs the possible perils. Growth drift in multinational enterprises According to Buckley and Casson (2009, p. 1563), Multinational enterprises or the MNEs are defined as firms that own and pull strings activities in more than one country through mergers joint ventures or franchises. These are businesses that are started in one country and later on start investing in foreign countries by establishing their market operations in the existing and emerging markets. There has been enormous growth in multinational enterprises or the MNCs and the international direct investment in the recent decades (Buckley, P & Casson 2003, p. 219). Companies based in industrialized nations have been leaders in establishment of multinational operations due to their strength in ownership advantages that is derived from foot and highly advanced technological applications. Multinationals have been strongly associated with economic growth and trade. United States, Japan and Sweden among other developed nations are identified as leading h ome countries for most multinationals since the countries are mainly the source of the foreign direct investment (Dunning & Sarianna 2008, p. 182). FDI is one of the most common mechanisms used by MNCs to start and nourish business operations in foreign countries. Few companies were investing overseas in the early and mid-1960s, however, the trend of growth changed and there was significant change towards foreign direct investment activities. Since 1990s, there has been significant growth in international trade and production that has not only been reflected by the magnitude of the multinational firms but has also had sectoral composition of inflows and outflows. The significant change in sectoral composition and geographical investment activi