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Abstract This article examines the growth processes of multinational corporations based in Third World states. It is suggested that both ownership and location-specific factors explain the emergence of these firms. The main competitive strengths of these firms lie in their access to manufacturing technologies suitable to the conditions of the developing world: lower operating and overhead costs, familiarity with the business environment of Third World states, and their perceived less threatening nature. The article identifies their advantages and disadvantages to home and host states and indicates that these firms could become a significant factor in the international economic system. Journal Information International Studies Quarterly, an official journal of the International Studies Association, seeks to acquaint a broad audience of readers with the best research being done in the variety of intellectual traditions included under the rubric of international studies. Therefore, the editors welcome all submissions addressing this community's theoretical, empirical, and normative concerns. First preference will continue to be given to articles that address and contribute to important disciplinary and interdisciplinary questions and controversies. JSTOR provides a digital archive of the print version of International Studies Quarterly. Publisher Information Wiley is a global provider of content and content-enabled workflow solutions in areas of scientific, technical, medical, and scholarly research; professional development; and education. Our core businesses produce scientific, technical, medical, and scholarly journals, reference works, books, database services, and advertising; professional books, subscription products, certification and training services and online applications; and education content and services including integrated online teaching and learning resources for undergraduate and graduate students and lifelong learners. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of information and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Wiley has published the works of more than 450 Nobel laureates in all categories: Literature, Economics, Physiology or Medicine, Physics, Chemistry, and Peace. Wiley has partnerships with many of the world’s leading societies and publishes over 1,500 peer-reviewed journals and 1,500+ new books annually in print and online, as well as databases, major reference works and laboratory protocols in STMS subjects. With a growing open access offering, Wiley is committed to the widest possible dissemination of and access to the content we publish and supports all sustainable models of access. Our online platform, Wiley Online Library (wileyonlinelibrary.com) is one of the world’s most extensive multidisciplinary collections of online resources, covering life, health, social and physical sciences, and humanities. Rights & Usage This item is part of a JSTOR Collection.
 AbstractMultinational corporations sell technology - both for production and for consumption - on highly imperfect international markets to less developed countries. The buyers must concern themselves both with appropriateness and with price. Despite some experience to the contrary, multinational firms may increasingly be prepared to sell more labour-intensive technologies and more essential-intensive products. Political influences upon the governments of less developed countries make it likely that the role of multinational corporations in the future sale of more appropriate technologies will be concentrated in manufacturing for export. Cited by (0)Copyright © 1975 Published by Elsevier Ltd. How are multinational corporations benefiting countries?Multinational corporations often invest in developing economies and bring employment opportunities to the population, while simultaneously gaining access to affordable labour and materials.
What are the advantages of multinational companies operating in developing countries?Some of the advantages of Multinational companies (MNC's) are 1) it will help in increasing the trade of the nation 2) It will help in improving the economy of a nation 3) It will increase employment opportunities for the people of a nation.
How have multinational corporations changed the world economy?Multinational corporations have played a leading role in this globalization, establishing multiple links between the economies of various countries. Using capital from developed countries, MNCs establish factories and plants in developing countries, where they can access raw materials and labor more cheaply.
What benefits does an MNC enjoy when it sets up its manufacturing units in developing countries like India?Answer: MNCs set up their offices and factories in those regions where they get cheap labour and other resources because they bring down the cost of production and ensure more profits for themselves.
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