Multinational Corporation as a Catalyst of Nation Building in the Third World Countries. (the Nigeria’s Experience)
CHAPTER ONE
Objective of the Study
Objective of the study
The objectives of the study are;
- To ascertain whether the multinational corporation in Nigeria are social responsible.
- To examine the role of multinational corporations towards economic growth of Nigeria.
- To identify the factors determining the growth and success of multinational corporation in Nigeria.
- To ascertain the role of multinational corporation in nation building
CHAPTER TWO
REVIEW OF RELATED AND RELEVANT LITERATURE
Introduction
Multinational Corporations (MNCs): Concept and Objective
The term multinational corporation (MNC) can be defined and described from differing perspectives and on a number of various levels, including law, sociology, history, and strategy as well as from the perspectives of business ethics and society. Multinational corporations are companies which seek to operate strategically on a global scale. A multinational corporation is a company, firm or enterprise that operates worldwide with its headquarters in a metropolitan or developed country. Hill (2005) defines Multinational Enterprise as any business that has productive activities in two or more countries. Certain characteristics of Multinational Corporations should be identified at the start since they serve, in part, as their defining features. Often referred to as “multinational enterprises,” and in some early documents of the United Nations they are called “transnational organizations,” Multinational Corporations are usually very large corporate entities that while having their base of operations in one nation— the “home nation”—carry out and conduct business in at least one other, but usually many nations, in what are called the “host nations.” Multinational Corporations are usually very large entities having a global presence and reach (Kim, 2000). Multinational corporations (MNCs) can spur economic activities in developing countries and provide an opportunity to improve the qualities of life, economic growth, and regional and global commons (Litvin, 2002). According to Gilpin (1987) ‘the principal objective of multinational corporations is to secure the least costly 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 objective confirms the views of the Marxist who see the MNCs as progressive agents of capitalism. As a result of this capitalist motif, the MNCs try in every way possible to cut down expenses and maximize profit. As stated, the MNCs usually have their head office in one country with a cluster of subsidiaries in other countries and maintain a very high standard management outfit. This managerial expertise gives rise to maximum efficiency, that is, maximum result at minimum cost. At the same time, they are often also accused of destructive activities such as damaging the environment, complicity in human rights abuses, and involvement in corruption. Whether these accusations are fair or not, many MNCs are now attempting to manage these complex set of issues in the host countries by implementing corporate social responsibility (CSR) strategies because such issues may risk the success of their operations.(Bulus & Ango,2012). It is not in the nature of the MNCs to solve social or economic problems of the host countries. Luis Echeveria, the former Mexican President had the belief and feeling that there is the need for transnational corporations to respect the social and cultural fabric, as well as the development priorities of the countries in which they are investing (Robinson, 1979). This attitude of MNCs should encourage all those who are clamoring for the involvement of MNCs in activities that are not attuned to or in line with the activity of maximizing profits. They should begin by way of redefining and re-stating the meaning and nature of the MNCs to have the well-being of the host nation at heart. The MNCs are very faithful to the capitalist principle and would do anything to resist the tendency to make them deviate from their age – long tenets.
CHAPTER THREE
RESEARCH METHODOLOGY
- Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought multinational corporation as a catalyst of nation building in the third world countries
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain multinational corporation as a catalyst of nation building in the third world countries. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of multinational corporation as a catalyst of nation building in the third world countries Summary
This study was on multinational corporation as a catalyst of nation building in the third world countries. Four objectives were raised which included: To ascertain whether the multinational corporation in Nigeria are social responsible, to examine the role of multinational corporations towards economic growth of Nigeria, to identify the factors determining the growth and success of multinational corporation in Nigeria and to ascertain the role of multinational corporation in nation building. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staffs of selected multinational companies in Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made HRMs, production managers, administrative staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
By and large, efforts have been made at carefully analyzing bit by bit the subject of this research. Also all the research questions formulated. From the findings of this research, one can make bold to say that multinational corporations in the country rate contributing to the social, economic and technological development of Nigeria. Save that while the economic contributions are inadequate. That is to say that, their response to their corporate social responsibilities and technological impact in the country is nothing to write home about. Therefore give or take, the multinational corporations operating in Nigeria are helpful to Nigeria’s economy generally but given the enormous wealth made by these MNC in the country, their managerial and technological know-how, this help is considered as a spit in the ocean. There help notwithstanding, the MNC in Nigeria equally have their fair share of shortcomings.
Recommendation
The on-going unhealthy romance between most governments of the third world and trans-national enterprises including World Bank and IMF should be discouraged and re-assessed to the advantage of the third world nations. Governments of new states should emphasis the training of their nationals in some professionally skilled areas such as oil sector which is currently the exclusive sector of the multi-national companies.
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