State or Critique Todays charges against the MNCs Essay

State or review article Todays charges against the MNCs - Essay ExampleThe global liberalization has paved the way for fast expansion and growth of MNCs. The think of added of all foreign affiliates of MNCs as a percentage of world GDP increased from slightly 5 percent in the beginning of the 1980s to nearly 7 percent in 1990s and to 15 percent in 2000s. The dominance of MNCs is very clear when the contribution towards a state is seen. The GDP of most of the nations is smaller than the value of the annual turnover of multinational giants like Ford and cosmopolitan Motors. This allows MNCs to play a crucial role to shape national and economic policies to their benefits.This is not delightful as MNCs induce contestation among the existing firms and it encourages free enterprise through technology transfers. They head for the hills to equalize the cost of factors of production around the world. When the MNCs enter the host country, the local enterprises imitate the spick-and-sp an technology brought by the MNCs to improve their production efficiency this is the direct technology spillover effect. The market competition pressure force the local firms to adopt more advanced technologies, which push the technological progress.In nearly cases, countries rely on MNCs for most of their projects. In this case, MNCs will be a cracking boon to the Public Sector too. In the case of employees salaries, the private sector pays more compared to the semipublic sector and the work practices in private sector are more innovative compared to the routine establish 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 high governmental pressures.MNCs are characterized by high levels of spending and mostly they are inefficient compare to the attention of a small firm where each activity is accountable to the core and efficient methods are followed.MNCs