Multinational Corporations in Less Developed Countries: An Alternative Strategy

Abstract

In a world characterized by increasing transnationalization of business, the multinational corporations (MNCs) are destined to play a central role in global economic integration. By focusing on the dynamic trilateral relationship between MNCs, home and host countries, this study critically explores certain aspects of MNC operations in less developed countries (LDCs) and proposes an alternative strategy aimed at the achievement of long-term stability in MNC-LDC relations. The dimensions of MNCs' impact are documented through case studies based on income distribution data, the analysis of political events and consumption patterns – representing the economic, political and cultural aspects of MNC influences respectively. The proposed alternative strategy is designed to ameliorate tensions between MNCs and LDCs, based on enlightened self-interest, sound business practices, cultural sensitivity and social responsibility.