Multinational corporations - debate the positive and negative aspects Essay

Multinational corporations - debate the positive and negative aspects of multinational corporations - assess the potential impact on global business in the Arab World - Essay Example The operations of multinational corporations mainly originate from developed countries and extend beyond their own countries, and cover both developed and less developed economies. Multinational corporations play a crucial role in globalisation. They contribute to both positive and negative impact on economies involved in international business. Anti-corporate people argue that multinational companies reduce competition and enterprise while pro-corporate people claim that multinational corporations improve the economic development of underdeveloped countries. In most cases, multinational corporation originate from developed and the emergent economies and enter underdeveloped and other developed countries, causing negative and positive impacts in such economies. Generally, multinational economies cause more advantages than disadvantages, and can be considered as an important element of a globalised world. One of the advantages of multinational corporations is that it reduces unemployment in host countries. Noland (2007) suggests that multinational corporations could reduce these unemployment rates and improve businesses. Unemployment in less developed economies world has led to impoverishment, discontent, militancy and repression. Multinational corporations can come into play by providing opportunities of employment for the host countries; hence increasing the welfare and standard of living for the local communities. Through economic integration, multinational corporations are able to transfer and disseminate technological knowledge and innovation as well as information and capital into their host countries. The local capacity of building the economy in less developed countries is uncertain. Foreign multinational corporations entering the local markets of such countries may bring in knowledge, information, technology, capital and innovation to build the economy and reduce uncertainties experienced by businesses in the local