An assessment of multinational corporations in the economic development of third world countries

Abstract

This study focuses on Multinational Corporations (MNCs) and their importance in the economic development of Third World Countries. Recogni sing that. MNCs can contribute to economic growth and development, most Third World Countries are constantly working to attract them. hence their demand has become highly competiti ve. However, MNCs do not go without some negative effects. such as conflicts between host and investor countries. and the creation of damaging competition to local firms. These negative effects could be minimised if policies and strategies for the promotion and attraction of MNCs are part of. and integrated into. general economic development and economic reform policies and not seen in isolation. Although Third World Countries have implemented strategies to attract more MNCs. a refinement of some of these policies is needed if a country is to be successful in this regard.