Question

Respond to the following in a minimum of 175 words:

Describe the role of multinational corporations in the global business environment.

Answer 1

Multinational corporations can be considered as the basic functioning unit for the process of globalization. Multinational corporations, unlike global organizations, have their operations as more autonomous units where the organization has adapted to the cultural aspect of each country they operate within. Multinational corporations add value to a country’s ability to generate jobs, allows the transfer of knowledge, technology as well as provide products not available in the market while operating in it. Multinational also adds value in terms of providing competition in the market, which might be dominated by a monopoly before. It is essential for a developing country which is in the initial stages of development to bring about considerable growth in terms of trade and commerce as well as adds value which ends up creating a better quality of life for the people. It also serves as a base for operations for the organization where they can primarily source the raw materials, has cheaper labor and a market with potential growth opportunities and create the best possible outlook to reflect their overall operations. They aid in the development of infrastructure as well, which in turn promotes further trade between the different countries, bring them closer to one another.