State or Critique Todays charges against the MNCs Essay

State or Critique Todays charges against the MNCs - Essay ExampleThe global rest has paved the way for fast expansion and growth of MNCs. The value added of all foreign affiliates of MNCs as a percentage of world GDP increase from about 5 percent in the beginning of the 1980s to nearly 7 percent in 1990s and to 15 percent in 2000s. The authorization of MNCs is very clear when the contribution towards a country is seen. The GDP of most of the nations is smaller than the value of the annual turnover of multinational giants like pass over and General Motors. This allows MNCs to play a crucial role to shape national and economic policies to their benefits.This is not acceptable as MNCs induce tilt among the existing firms and it encourages free enterprise through technology transfers. They work to equalize the cost of factors of production around the world. When the MNCs enter the host country, the local enterprises succeed the new technology brought by the MNCs to improve their pro duction efficiency this is the direct technology spillover effect. The market competition pressure force the local firms to engage more advanced technologies, which push the technological progress.In some cases, countries rely on MNCs for most of their projects. In this case, MNCs will be a great boon to the Public Sector too. In the case of employees salaries, the clandestine empyrean pays more compargond to the public sector and the work practices in private sector are more innovative compared to the routine based work in most of the public sectors. In these ways, MNCs enrich Private sector as entry barriers are minimal here and starve the public sector due to mellow political pressures.MNCs are characterized by high levels of spending and mostly they are inefficient compare to the management of a small firm where each activity is accountable to the core and efficient methods are followed.MNCs