Introduction Multi-National Corporations (MNCs) have been accelerating their push to shift production of their goods and services

from higher cost developed countries to more economically attractive labour markets in the developing world.

Multinational firms are those who have direct operations and employees within several countries. They represent the most powerful part of corporate business, act in the international scales and play the leading part in strengthening of global economic co-operations. The multinational corporations conduct the transaction on the basis of the developed global strategy, connecting the national and regional markets and supplying integrity of the world economy (Shagurin and Shimko, 2008). . Multinational Corporation A multinational corporation (MNC) is a corporation that is registered in more than one country or that has operations in more than one country. It is a large corporation which both produces and sells goods or services in various countries. It can also be referred to as an international corporation. They play an important role in globalization (Wikipedia, 2013). Characteristics of Multinational Corporation 1. Giant Size 2. International Operation 3. Oligopolistic Structure 4. Spontaneous Evolution 5. Collective Transfer of Resources 6. American dominance (Khanna, 2012) Third World Nation Third world nations are commonly referred to as Developing The

underdevelopment of the third world is marked by a number of common traits; distorted and highly dependent economies devoted to producing primary products for the developed world and to provide markets for their finished goods; traditional, rural social structures; high population growth; and widespread poverty. Nevertheless, the third world is sharply differentiated, for it includes countries on various levels of economic development. And despite the poverty of the countryside and the urban shantytowns, the ruling elites of most third world countries are wealthy (Investopedia, 2013).
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Influence of Multinational Corporation on Policy Making of Third World Nation Positive Influence Economic Policy: The value of the products sold by the MNCs in 1971 was more than $ 500 billion which was about one-fifth of the GNP of the entire world, excepting that of socialist economies. In the host countries, the volume of their production was about $ 330 billion. The present growth rate of their output in the host countries is a spectacular 10 per cent per annum which is almost double the growth rate of the world GNP (Khanna, 2012). Trade and Finance Policy: Trade and international finance, the multinational firms have come to exercise enormous power. In early seventies the MNCs accounted for about one-eighth of all international trade- From the nature of their growth it may be presumed that in the early eighties their share will rise to onefourth (Khanna, 2012). Technological advancement: Bianchi, Carnoy, and Castells (1988), research in People's Republic of China, saying that that the importation of new technology includes both hardware and software including quality control with the use of technology to create minimal technology transfer and lesser productivity linkages to other firms. Creating employment opportunities: Rama (2003) stated that the career opportunities are being created more and more then provided to the people of developing country especially skilled workers. While businesses organisations invest in developing country, it's always aim for the lowest labour cost to minimize their business cost and maximize their profit while they are able to satisfy and achieve the expectations of the particular company. Enhancement of economy: According to Baghwati (2004), when a country goes global, it is playing a significant role of enhancing economic affluence by offering more and more opportunities to developing countries. Negative Influence Exploiting Labour: The Economist (2001) and Woods (2000) saying the government of developing countries increasing minimum wage and labour safety standards in order to protect local workers' rights and this might cause MNCs have to relocate their operation to another developing countries, who are willing

to accept low wages, lack of union representative and legal protections such as child labour and other gross labour that abuses by global companies. Imbalanced worker payment: In a global market, the demand of the skilled worker is much higher than the unskilled workers. Thus, this will widen the gap of income between both the classes of workers when they used to compare with each other. Skill workers will be easily to be offered for a job while those unskilled workers will face the difficulties in getting a job. Trade barriers: The adjustment in trade barriers has lead to the promotion of specialisation to developing countries because they are able to concentrate on the production of commodities which can be produced at the least cost. Problem in production: It is always an effective way of enhancing innovation to produce better quality goods, enhanced competition as the flow of goods and services between countries has becomes easier but such development is giving developing countries an opportunity to obtain goods that prove expensive to produce in their own countries. Imbalanced technological advancement: There are experts who argued that introducing new technology to a country especially developing country will result in unemployment because of uncoordinated world demand where the rates of economics' growth are too slow. Dissatisfaction in workers management: When micro-electronic take place in manufacturing industry, most of the jobs employment created in micro-electronics production is focusing on new workers where women take a larger participation in production level, highly educated than men in research and development, management and sales. Conclusion In conclusion, there are both positive and negative impacts on host countries which caused by transnational corporations (TNCs) or multinational corporations (MNCs). Countries will not growth without TNCs' business but if one's country is too dependent on TNCs, it might not be a good decision as TNCs might bring disaster to developing countries, even the whole country can collapse in very short times. Hence, research done by scholar indicated that TNCs bring more negative impacts than positive ones' in developing countries because it is still a lot of business techniques that have to be learn before we can really handle the global markets' activities.
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Reference Shagurin, S.V. and Shimko P. D., 2008 Economy of the transnational enterprise, http://the-books.biz/economic-theory/economic-integrationthemultinational- 35246.html Access date 3 May, 2013 Wikipedia, 2013. Multinational Corporation. Retrieved from http://en.wikipedia.org/wiki/Multinational_corporation Access date 3 May, 2013 Khanna, R., 2012. Multinational corporations: Characteristics and significance of MNCs. Retrieved from http://www.publishyourarticles.net/knowledgecharacteristics-and-

hub/company- accounts/multinational-corporationssignificance-of- mncs.html Access date 3 May, 2013

Investopedai, 2012. Third World. Retrieved from http://www.investopedia.com/terms/t/third-world.asp Access date 3 May, 2013