Multinational Companies Impact

Improved Essays
In developing countries there are more and more multinational companies which tried to develop their business, but this situation that would had influence to personal, local companies and living, even government, political or society environment (BBC). For granted the positive and negative of impact are simultaneously, the positive that the multinational companies improved the country economics and increased freedom on marketing. In contrast, there are negative effect to society such as a reducing of traditional crafts, competitive dropping of local companies and political effect of government (Farrell, 2003). In article which will show the social responsibility of multinational companies and the factors of influences to the developing countries, moreover that are including the solution of negative effect of the multinational companies.

Jobs created is one of the
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First example was MNC could harmful damage to small local market, when the foreign company had number of circulating capital and resources to decrease the cost of production forcibly, moreover the developing countries would provide large workforce to the companies further reduce the cost of expenditure, thus it led the local companies lose their competitive, then the small local shops could be merged or be eliminated, led to the social business would be controlled by foreign capital and the public fund mostly are transfer to other countries. Another factor that will happen after the first factor, MNC which have many influence of economic convention of developing countries, this meaning the national sovereignty will be weaken seriously that have important effect on country’ economic operation, especially on the

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