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 positive of multinational Corporations development in developing countries, companies which have enough money invested, the society of developing countries have great amount of workforce, they provide their necessary and resources to both side. There is a data show the multinational companies from America which created many jobs to different countries, they created 522,000 jobs in China, 251,000 jobs in India and around one hundred thousand jobs in Brazil and Mexico (Ensinger, 2010). FDI, it’s the one importance factors of economics impact of developing countries’ economics growth (Sakamoto and Chapman, 2012), which has a direct effected to increase social situation, there is a cause about the first McDonald opened in Vietnam in 2014 which served more than 400,000 customers in a month, it directly lead to the Vietnam economics and local business rapidly prosperous (Massey, 2014). Among the FDI, education, worker training and technology transfer are benefit from foreign investment (ibid), education interact of different countries would improve the level between the countries. Tourism industry is the next one which had advantage effect from the foreign firms, it improve the absorptivity of local tourist destination thus boosting the class of society. Follow the improving on tourism industry there are more chain and international hotels joined in this economic rim, and the government could get much income form the tourism and hotel accommodation tax, that this is occupy high rate of the income of government. Employees even have more training chances to improve their quality of work, many firms encourage their employee to enhance their value and learning more different knowledge, for example, some company will send their employees to another company to exchange their working place, or conduct some courses. When MNC are working with local companies, they can use both countries’ technologies which could indirectly to increase the development of science and technology, furthermore the technology transfer can increase the market power. To society, such as the article wrote that created more jobs can help more poor people to ameliorate a better living situation. Secondly, it’s possible for MNC to build more goods and services, such as household and health services, people who can have better health protect, and that measure can directly to decrease the high cost of household, which would to deal emergency house situation. Finally, social life have more benefit because when MNC start to asset injection, people who can are improving their life style and increase the social class, such as they can buy brand products, jewellery and high-tech products. Multinational companies created and developed much benefit to the developing countries, of course that was a great situation for people who living …show more content…
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
Jobs created is one of the positive of multinational Corporations development in developing countries, companies which have enough money invested, the society of developing countries have great amount of workforce, they provide their necessary and resources to both side. There is a data show the multinational companies from America which created many jobs to different countries, they created 522,000 jobs in China, 251,000 jobs in India and around one hundred thousand jobs in Brazil and Mexico (Ensinger, 2010). FDI, it’s the one importance factors of economics impact of developing countries’ economics growth (Sakamoto and Chapman, 2012), which has a direct effected to increase social situation, there is a cause about the first McDonald opened in Vietnam in 2014 which served more than 400,000 customers in a month, it directly lead to the Vietnam economics and local business rapidly prosperous (Massey, 2014). Among the FDI, education, worker training and technology transfer are benefit from foreign investment (ibid), education interact of different countries would improve the level between the countries. Tourism industry is the next one which had advantage effect from the foreign firms, it improve the absorptivity of local tourist destination thus boosting the class of society. Follow the improving on tourism industry there are more chain and international hotels joined in this economic rim, and the government could get much income form the tourism and hotel accommodation tax, that this is occupy high rate of the income of government. Employees even have more training chances to improve their quality of work, many firms encourage their employee to enhance their value and learning more different knowledge, for example, some company will send their employees to another company to exchange their working place, or conduct some courses. When MNC are working with local companies, they can use both countries’ technologies which could indirectly to increase the development of science and technology, furthermore the technology transfer can increase the market power. To society, such as the article wrote that created more jobs can help more poor people to ameliorate a better living situation. Secondly, it’s possible for MNC to build more goods and services, such as household and health services, people who can have better health protect, and that measure can directly to decrease the high cost of household, which would to deal emergency house situation. Finally, social life have more benefit because when MNC start to asset injection, people who can are improving their life style and increase the social class, such as they can buy brand products, jewellery and high-tech products. Multinational companies created and developed much benefit to the developing countries, of course that was a great situation for people who living …show more content…
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