The Effects of Multinational Companies (MNCs) Involvement in Developing Nations

Abstract

Purpose: The purpose of the study is to examine the effects of Multinational Companies involvement in developing nations. Methodology: This study adopted a desktop methodology. This study used secondary data from which include review of existing literature from already published studies and reports that was easily accessed through online journals and libraries. Findings: The study concluded that the critical roles played by MNCs include providing employment, contributing to community development projects, and providing industrial training to youth. Other roles include providing local markets, providing emergency assistance to disaster survivors, environmental protection, staff development and contributing to the tax base. Unique Contribution to Theory, Practice and Policy: The study was anchored on legitimacy and stakeholder’s theory. The study recommends that multinational companies should ensure they have in the board of directors, a member who is originally from the host country. The study also recommends that there should be more incorporation of the community and other stakeholders in future MNC activities to avoid conflicts.