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Effect Of Multinational Corporations On Nigeria Economy
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Infact the mention of multinational corporation usually elicits mixed
reactions. On the one hard, MNCS are associated with exploitation and
ruthlessness. They are criticized for moving resources in and out of a
country as they strive for profit without much regard for the country
social welfare Varity Corp a Canadian multinational firm. Was criticized
for its action in 1991 to relocate its headquarter from Toronto to the
united states (Buffalo) in order to take advantage of U.S Canadian Free
Trade agreement. “For a long time India referred MNCs as agents of
neocolonialism (Robinson, 1979).
On the other hand MNCs have power
and prestige additionally they create social benefit by facilitating
economic balance. As explained by Miller “with resources capital, food
and technology unevenly distributed around the plannet and all in short
supply, an efficient instrument of quick and effective production and
distribution of a complex of goods and services is first essential
(Stopford, 1998).
According with the UNCTAD (United Nations
conference on trade and development) more than two thirds of the world
trade involve at least one multinational half of which occurs within the
same multinational around the world. The worlds 44,508 MNCs manage some
280,000 affiliates all over the world.
With regards to Nigeria
economy there some 3,000 of them having their foreign direct investment
either in manufacturing or service industries. Their emergency with
regard to Nigeria economy dated back to the history and activities of
the Royal Niger company. Of which today in Nigeria they have increased
much more in number (Tatum, 2010). These multinational corporations
while Nigeria in a way opportunity of genning what they did not have
from foreign country, but the issue is that did they create opportunity
with some part of the produce of Nigeria industry employed in a way in
which Nigeria have greater advantage (Wiig & Kolstad, 2010).
1.2 STATEMENT OF THE PROBLEM
Most
of the multinational corporations operate by seeking and securing the
opportunity for environment that has least cost of production of goods
for world markets. This goal may be achieved through acquiring the most
efficient locations for production facilities or obtaining taxation
concession from host governments. This has been looked upon by many has
counterproductive to the host country. Though multinational corporations
have contributed in terms of job creation but many of the employees of
most Multinational Corporation are poor remunerated. However, the
researcher is evaluating the role of multinational corporations towards
economic growth of Nigeria.
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
1. To examine the role of multinational corporations towards economic growth of Nigeria.
2. To identify the factors determining the growth and success of multinational corporation in Nigeria.
3. To examine the demerits of multinational corporation to their host country.
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