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Multinationals and Developing Countries

This research examines the impact on developing countries of the activities of multinational corporations (MNCs) in those countries. The intent of this examination is to reach a conclusion about the overall impact: has it been positive or negative?

DIFFERING VIEWS OF THE CHARACTER OF THE MNC IMPACT ON DEVELOPING COUNTRIES

"The owners and managers of global corporations view the entire world as their factory, farm, supermarket, and playground" (Sklar, 1984, p. 8). An alternative view was expressed by former American Undersecretary of State (and, now, investment banker) George Ball (1967), who refers to MNCs as cosmocorps, and defends their activities, which he described as "taking the raw materials produced in one group of countries, transforming these into manufacturing goods with the labor and plant facilities of another group, and selling the products in still a third group . . . with the benefit of instant communications, quick transport, computers, and modern management techniques" (p. 26). Agreeing with Ball, Peter Drucker (1981), American management and organization analyst and theorist, said that, "to the developing country . . . , the multinational is both highly important and highly visible" (p. 63). On the other hand, Eric Williams (1970), former Prime Minister of Trinidad and Tobago, said that the psychological dependence of developing countries on the industrial countries was born of colonialism, and is fostered by the modern MNC; that such "psychological dependence strongly reinforces the other forms of dependence," and perpetuates dependence as "a state of mind"; an action which "seems to have crippled Caribbean selfconfidence and Caribbean selfreliance . . . psychological dependence leads to an ever growing economic and cultural dependence on the outside world" (p. 123).

Vernon (1984) contended that economic growth in developing countries depends on the availability...

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Multinationals and Developing Countries. (1969, December 31). In LotsofEssays.com. Retrieved 05:49, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1687398.html