Answer to Question #259409 in Sociology for toshiro

Question

The role and the impact of multinational corporation in the developed countries?

Answer 1

Multinational cooperation refers to an established large organization that is registered in a particular country but control, own, or manages distribution and production facilities in other countries. Since most multinational cooperations have registration in developed countries, the profits realized in the countries where they are located are repatriated to the developed countries leading to improved economies. When new projects are undertaken in other countries, multinationals employ and use skilled labor from their countries. Hence, they create employment opportunities for the developed countries' citizens abroad. Moreover, some multinational companies mainly in manufacturing produce parts in the developed countries and ship or transport them to other countries for assembly and distribution. Through this, they create employment in developed countries.