When a multi-national Corporation expands into a developing country it can have a profound impact on that country.  It may create hundreds of new jobs and thereby contribute to both the wealth and employment of that country’s economy.  “The introduction of technology to the developing world can lead to cleaner more efficient technologies” (Guyon, 2007). The introduction of new technology may enable the upgrade of infrastructure, provide a catalyst for learning new skills and further enhance the prospect of employment by creating jobs from subsidiary industries.  The presence of the new Company will also attract investors who see growth potential and further contribute to the improved economic conditions.  Employment also creates consumer spending and thereby entice more consumer goods and additional business to the country.  In addition wages and salaries help to reduce the poverty situation in a country and provide better living conditions.

There may also be negative considerations depending upon the multinational company involved.  Not all abide by ethical considerations and some are motivated by greed and exploitation.  They may move to an area where they see an opportunity for cheap labour and the ability to make larger profit margins. Textile Companies have been seen to use child labour and in violation of human rights.  There is also the question of environmental pollution and not all industries are green.  For example you might not want an Aluminum Smelting plant or an Oil Refinery where your primary industry is agriculture based.  Equally corrupt regimes do not always use wealth creation for the benefit of the people. Angola has been at war for 35 years despite creating vast wealth from such Companies like Texaco, Chevron and Exxon “U.S. companies have never been prohibited from operating in the country.” (Lewis, 1997).

Despite the negative considerations most Governments of developing countries consider that the expansion of multi-nationals is crucial to their economic wellbeing and future survival.  It is important to keep this into context and Companies like Nike with child labour issues and other environmental pollutants are in the minority considering we have over 60,000 multi-national corporations.  “Competition is not destructive; it has compelled multinational corporations to provide the world with an immense diversity of high-quality and low-priced products” (Quinliven, 2010).  As a number of world leaders have pointed out, the developing countries need job and employment creation not welfare or charity. They need entry to free market conditions and help in developing people, infrastructure and maturity of their countries.