Globalisation is the process of rapid integration or interconnection between countries.
MNCs play an important role in the globalisation process.
They compete with the local producers directly even after being miles apart, thus integrating the markets.
Their working leads to exchange of investments and products which leads ti interconnection between diverse countries.
MNCs control production in more than one country.
They collaborate with smaller industries helping them to be more profitable.
Being economically affluent they are able to make investments in various countries.
They are also technically advanced promoting globalization.
They offer higher income, better jobs and better education.
More goods are available globally at a cheaper rate and a good quality.
They provide greater opportunity of choices.
The role of MNCs in the process of globalisation can further be understood through the following five examples:
- MNCs have led to the availability of products from all over the world in any country. For example, in India, corporations like Ford and Hyundai have led to a greater availability of cars from other countries.
- MNCs from developing countries are also increasing their presence in developed countries. For example, Tata Tea purchased Tetley, a tea brand in Britain a few years ago.
- They have led to a greater movement of labour across the world. For example, Indian software engineers working in TCS go to U.S. for work.
- MNCs have increased the inflow of education and foreign capital across different countries. For example, when a corporation like General Electric invests in India, it brings in capital from abroad.
- They have led to more transfer of education and technology across the countries. For example, Samsung brings in more advanced technology for manufacturing electronics into countries like India.