MNCs and it’s impact on developing countries.

[lumbanrang]

the best trained managers with the right skill best suited for the job

It’s impact on developing countries.

Multi-national companies use developing countries as their base ground for manufacturers or we can say for labor forces. Cheap labor, cheap land, and cost-effective transportation are some key points that make developing countries a hot cake for multinational companies. All the telecom companies in Bangladesh are owned by foreign companies. 

Totally agree with you. Multinational companies only target developing countries to be able to make them as cheap production sites and as potential markets. However, even so, we cannot deny that the presence of MNC's greatly helps the development of technology and economy in developing countries.

[1714199518]

1714199518

[1714199518]

1714199518

[1714199518]

1714199518

[White pawn]

the best trained managers with the right skill best suited for the job

It’s impact on developing countries.

Multi-national companies use developing countries as their base ground for manufacturers or we can say for labor forces. Cheap labor, cheap land, and cost-effective transportation are some key points that make developing countries a hot cake for multinational companies. All the telecom companies in Bangladesh are owned by foreign companies. 

Totally agree with you. Multinational companies only target developing countries to be able to make them as cheap production sites and as potential markets. However, even so, we cannot deny that the presence of MNC's greatly helps the development of technology and economy in developing countries.

MNCs set their targets on developing countries not only for the cheap labor and production sites. Like you said, there is potential markets in these countries as well.
We also cannot deny the presence of these MNCs also contribute in its own way to the growth of the host countries.

[YinShuiSiYuan]

Multinational coporations have a more positive impact on developing countries than negative impact.  They help to create job opportunities for many people, helps to create growth opportunities and improvement in  standard of living Inn developing countries. It also create competition in market and that promotes and motivates local people to improve their standards.

[White pawn]

Multinational coporations have a more positive impact on developing countries than negative impact.  They help to create job opportunities for many people, helps to create growth opportunities and improvement in  standard of living Inn developing countries. It also create competition in market and that promotes and motivates local people to improve their standards.

In my opinion, multinational corporations has a more negative impact on developing countries. There isn’t any doubt that these MNCs impact a lot on its host nation. They create job opportunities and help with infrastructural development as part of their corporate social responsibility.

Without these MNCs, there would still be competition in the market as local markets would still exist and thrive. MNCs, being already established with large financial assets is definitely not in a healthy competition with other local businesses.

They impact positively as well as negatively on its developing host country.

[South Park]

One area corporations might improve in is to adopt the wage scaling structure from the book Moby Dick.

The pay scaling used in Moby Dick is entirely profit based. A cabin boy might receive 1/250 of net profit. While the captain might take home 1/10 of profit.

Profit based pay scaling motivates everyone to want to succeed. The more successful their venture is, the more they get paid. This motivates workers to work harder and do more to guarantee their mission does well. Also if their venture fails, they might not be paid much at all. It is a very meritocratic format. It contrasts from current day business where executives whose have enterprises fail might still receive significant bonuses and golden parachute deals.

Profit based wage structuring is also a good historical reference for tracking trends in business and economics. If a street sweeper in 1820 was paid 1/500 of profits and a street sweeper in 2022 is paid 1/450 in profits. That makes pay scaling much easier to put into perspective.

I have always thought this is the way forward but for some reason businesses do not want to adopt that approach, for example it is known that on the average office a minority of the employees do most of the work while the majority just do the minimum to get paid, why those two groups should be paid the same when they are not doing the same amount of work? The first group should earn a lot more as they are the ones actually doing the heavy lifting, and yet they are paid the same which forces the first group to either reduce the amount of work they do as it makes no sense to work as hard for the same amount of money or move to another company which pays them more for their work.