MNCs have contributed significantly to development of world economy at large. MNCs help a developing host country by increasing investment, income and employment in its economy. They contribute to the rapid process of development of the country through transfer of technology, finance and modern management.
Multinational corporations are those large firms which are incorporated in one country but which own, control or manage production and distribution facilities in several countries. Therefore, these multinational corporations are also known as transnational corporations. They transact business in a large number of countries and often operate in diversified business activities. The movements of private foreign capital take place through the medium of these multinational corporations. Thus multinational corporations are important source of foreign direct investment (FDI).
