In modern times, the trend of multinational companies is increased. It is very easy method for any country to enter in the foreign market. So, it plays a very significant role in today’s world. These are the corporations which has its working area spread over more than one country, and which carry its activities even out of the country where it is situated. Moreover, it focuses on growth and employment by providing new jobs opportunities and bringing advanced technology.
Furthermore, in the year 2002, multinational companies had 30% share in gross national production. MNCs spend a part of the money earned by them on research and technical development in host countries. So that the pace of economic development can be increased. The underdeveloped countries have a lack of foreign capital. Multinational companies prove to be helpful in removing this deficiency. Due to Covid’s situation, every single person feels financially weak. But it is the MNCs that provide the best job opportunities with good salary packages. Therefore, the role of multinational companies are very important.
Contributions of multinational companies to developing countries
Many multinational companies have started their operations in developing countries since 1990s. MNCs considered as a major role in economic development in developing countries. In 1990s, the foreign direct investment in developing countries was $150 billion a year. However, in 2005 it increases around $334 billion annually. This dramatic increase of FDI in developing countries is a good sign of economic development. The members of the MNCs are spread all over the world. So they communicate with each other with the help of the internet. But sometimes due to network issues they are not able to communicate. Therefore, these companies use extenders for ease their transactions and interact online. Wavlink extender is the best one among the various extenders. You can check the internet status of your network through its wavlink setup website.
Multinational companies vs domestic companies
The MNCs operate its operations in two or more countries, whereas domestic companies restrict their operations to a single country. Multinational companies deal in different currencies depending on their subsidiaries. In addition to that, multinational companies use the new technology for their production, while most of the domestic companies don’t do this. So, the role of multinational companies are very beneficial for developing companies.
Top 10 multinational companies in the world
Do you want to know what are the top 10 MNCs in the world? Now, we will explain here.
Microsoft is an American technology company that was established on 4 April 1975 by Bill Gates and Paul Allen.
IBM stands for an international business machine company that began in 1911 by Charles Ranlettflint. In 1969, the IBN engineer invented the magnetic stripe card. It deals with computer hardware and software. So it contributes to the development of the economy.
It is a Swiss MNC for food and drink processing and its headquarter in Vevey Switzerland. Moreover it transmits their products all over the world. So, it contributes to the development of the world.
Coca- Cola is a soft drink company. Besides it, it was originated by John Stith Pemberton in the 19th century. Furthermore, there are more distribution channels for this. So, it provides employment opportunities.
PepsiCo is an American company that deals in food, snacks and beverages. Its headquarters in Harrison, New York.
It is an investment and financial company in America. It contributes to the development of an economy and was formed by the merger of banking giant Citicorp and financial conglomerate Travelers Group in 1998. New York City is its headquarter.
It is a Japanese company and it deals in electronic products. These companies also contribute to the welfare of the consumers. Because Sony also provides the low price products, so that even a layman can buy it. Minato, Tokyo is its headquarter.
It is an American company that manufactures consumer electronics, software and online services. It was created by Steve Jobs, Steve Woznaik and Ronald Wayne in April 1976. Moreover, it provides job opportunities in the world.
HP- Hewlett & Packard
HP is an information technology company and its headquarter in Palo Alto, California. Along with this, it used advanced technology to enhance the quality of their products. It was founded on 1 January 1939 by David Packard, Bill Hewlett.
Procter & Gamble
This company deals in personal care and hygiene products. It was founded on 31st October 1837 by William Procter, a candlemaker, and James Gamble, a soapmaker. In the Cincinnati, Ohio is its headquarter. The products of P&G is very popular, everybody can recognize them easily because of their popularity.
So the role of multinational companies that mentioned above is very crucial for contribute in the world economy.