Role and impact of multinationals

The author analytically examines the role and impact of Multinational Corporations (MNCs) in a historical and global context spanning two centuries from 1788, in the areas of export promotion, import substitution, research and development, linkages with small-medium enterprises, direct and indirect employment, entry into backward areas/capital markets, nursing of sick units, professionalisation of management, ecology concerns and social responsibilities. The author critically analyses the changing image and perspective of MNCs in the developing countries of Latin America/Caribbean, Africa, East and South East Asia, South Asia and the Gulf, and their changed perceptions in the centrally planned economies of China, USSR and East Europe. and MNCs joint ventures and increasing investments in these economies.

MNCs now account for a third of global manufacturing and world trade. They are becoming increasingly conscious of integrating with the goals and policies of host countries, and are now wedded to globalisation and becoming responsive corporate entities. The UN Code of Conduct nearing finalisation under UNCTC auspices has also helped to make them more co-operative with LDCs and their role is being accepted in the areas of technology and international marketing in the fiercely competitive global scenario.