According to Barnet and Mueller, multinational corporations contributed to the exacerbation of world poverty, unemployment and worldwide inequality. The different and conflicting interests of MNCs with those of the developing countries are the primary cause of the misery in the third world countries. Since corporation’s goal is profit maximization, they tend to exploit the available cheap labor in poor countries in the name of distributing income worldwide. This leads to economic imperialism where the multinational companies enjoy tax evasion in imports and exports. The technology transfer creates havoc to poor countries other than becoming sources of reliance. They knowingly transfer the kind of technology that these countries rarely need for their own benefits. With the increased consecration of income and creating unemployment with their technology, these corporations have contributed to world hunger.
Glickman and Woodward on the other hand had a different view of multinational corporations. In their writing, they view these companies as shifting the balance from the formerly known controllers of the world economy and distributing it worldwide. Foreign investors venture in a country and exploit their existing competitive advantage. Therefore, multinationals venture into well established economies to take advantage of them. This results to an inward thrust in the door of international finance. However, the affected nations also invest overseas and as a result international, direct investment flows simultaneously. The developed nations however view foreign investors with suspicion. Despite some seeing them as saviors of the economy, others picture them as threats both to economic independence and national security. The two contradictory views are apparent as the former see the investors as friends who create employment opportunities, bring new technology and increase national income through paying taxes. The truth according to the writer however, lies between the two extremes.
Multinational companies should however, be encouraged to invest whenever possible. Despite the inevitable negative effects they have on poor nations, their advantages outweigh the demerits. However, the government of the nations should take responsibility through passing laws that ensure public safety from the corporations.