A multinational corporations provide to the rapid of process

A multinational
corporation (MNC) is a corporation that has its headquarters in one country and
operates other corporations in other countries, and it can be called
transnational corporations. This corporation also has an ability tocreate jobs,
to invest capital, and to influence states political, and it can offer
incentives to the host government for changing states law and threaten to move
jobs and investment elsewhere. Then they also have three stages development of
their corporations. First, it will create a separate business strategy for each
country in which it operates after a corporation decides to operate in more
than one country. Second, a multinational corporation may try hard to dominate
a specific global market sector, but it nevertheless still concentrates much of
its effort in its home country. Third, MNC draws on global resources,
management, production, and other capabilities to assume the status of a
transnational corporation so that they have more power and members in the
global (Daniel S. Papp, 1984). For instance, in 1970, multinational corporations
have been increasingly recognized as significant international actor,
controlling resources far greater than another actor, and providing benefits to
the global (Karns & Mingst, 2004). In 1998, there are 49 of the world’s
largest 100 economic organization were multinational corporations, and they
produced over $3.5 trillion in goods and services (Daniel S. Papp, 1984).
Therefore, multinational corporations are particularly important actor in the
global to contribute benefits and to play roles according to some arguments in
the host country. First, their great value roles in a developing country are to
help increasing investment, income, and employment. Then multinational
corporations provide to the rapid of process of development of the country
through transferring of technology, finance, and modern management. They
encourage professionalization management in the companies of the host
countries. MNCs help in promoting exports of the host country and in reducing
its dependence on imports. MNCs equalize the cost of production in the global
market due to their wide network of productive activity,makes market more
competitive, and break the domestic monopolies. They help to make the growth process faster in the host
country through rapid industrialization and allied activities and to carry the
establishment of social welfare institutions and improvement of health
facilities in the host countries (NIRAV. S, 2012). Second, their
essential contributions in a developing country are product innovation that
MNCs have research and development departments engaged in the task of
developing new products and diversification in the product line. They generate
funds in one country and use such funds in another country because they have
huge financial resources. Then they can participate in the industrial
development programs of underdeveloped countries because of their technology
superiority so that they can produce goods having international standards and
quality specifications by adopting the latest technology in the host country.
They enjoy extension of activities beyond the geographical boundaries of their
countries, and they can enhance their international image by expanding their
operations activities. Moreover, they create the scale of operations results in
more job opportunities in order to enhance employment opportunities in
production and marketing activities. They carry on operation on a large- scale,
which ensure economics in material, labor, and overhead costs (“Advantage of a
Multinational Corporation,” 2011). Finally, through some reasonable above that
express MNCs are the important actor to play role and to contribute in the
global, liberalism is a one theory that asserts multinational corporations are
the main actor in the global. Liberalism argues that economic interdependence
increases the benefits associated with allowing free trade and joining the
division of labor, and lower the value of war when holding the benefits of war
constant, and liberal also emphasize that states are trading state, which
receive benefits from an economic interdependence system.