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Presented by : Ahmad Raza BajwaSection : A12U00231

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

USA’s power

Description

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• 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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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

Case study

Multinational Corporations in the Third World: Predators or Allies in Economic Development? by James C. W. Ahiakpor

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

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

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,

Sweat Shops

Nike- “Just don’t do it”..

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Social Responsibility

In context to Pakistan..

• Independence• No capital goods• Sends message as a good business destination