This document discusses multinational corporations (MNCs), providing information on both their positive and negative impacts. It notes that MNCs emerged prominently in the 17th-18th centuries and post-World War II. While MNCs can create jobs, improve products, and transfer technology, they may also exploit labor and harm local cultures and producers. A case study found that MNCs have helped improve standards of living in developing nations. The document concludes by stating the large number of MNCs worldwide and emphasizing the importance of corporate social responsibility.

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Presented by :
Ahmad Raza Bajwa
Section : A
12U00231

2. • 17th and 18th centuries
• Operating in several countries .
• The Dutch East India Company.
• Post 2nd world war and emergence of
USA’s power
Description
2

4. • Create employment opportunities in the host
countries..
• Helps removal of monopoly (domination)
• improve the quality of domestic made products.
• Promotes exports and reduce imports
• Goods are available at cheaper price due to economies
of scale.
• Job and career opportunities at home and abroad.
• Transfer of technology, capital and entrepreneurship.
• Greater availability of products for local consumers.
Favourable Impact of
MNCs
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5. 1. The host county may lose its
economic sovereignty
2. Feeling that labour is being exploited by the MNC/
Outsourcing
3. Lost of cultural moorings
4. The problem of Dumping
– Chinese products are priced low in Indian market.
 Bad business ethics
 Underestimate local culture
 Harmful to producers and consumers
Harmful effect of MNCs
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7. Case study
Multinational Corporations in the Third World:
Predators or Allies in Economic Development?
by James C. W. Ahiakpor

8. Findings of Case study
• MNC’s were misrepresented
• Helping 3rd world countries
• Improved standard of livings
• Misleading facts regarding low wages etc.
• Natives likeness towards imported goods
• Singapore, Taiwan are enjoying
• Corporate Social Responsibility

9. MNC’s in world
• The World Investment Report 2009, published
by the UNCTAD (United Nations Conference
on Trade and Development), states there is a
total of 889,416 multinational companies
(MNCs) around the world: 82,053 parent
corporations and 807,363 affiliates.
• In 2008, the 100 largest MNCs’™ sales
combined amounted to nearly $8.5 trillion

10. Sweat Shops Facts
• A "sweatshop" is defined by the US Department of Labor as
a factory that violates 2 or more labor laws.
• Sweatshops often have poor working conditions, unfair
wages, unreasonable hours, child labor, and a lack of
benefits for workers. Take a stand and protest: Ask your
school to make its apparel under fair conditions.
• In developing countries, an estimated 250 million children
ages 5 to 14 are forced to work.
• America has stronger labor laws than most undeveloped
countries, but it is not free of sweatshops. Many slip under
the radar of the US Department of Labor.
• Products that commonly come from sweatshops are shoes,
clothing, rugs, coffee, chocolate, toys,

11. Sweat Shops

12. Nike- “Just don’t do it”..

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14. Social Responsibility

15. In context to Pakistan..
• Independence
• No capital goods
• Sends message as a good business
destination