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The main objective of this study was to look, at international business management and assess the role of Multinational Corporation operating in Nigeria, in terms of their contribution to the socio-economic and technological development of the nation. The study was carried out in some selected multinational and it covered staff (respondent), 133 in number with at least secondary education. Data were collected mainly through structured questionnaires interviews and other secondary sources. The MNC are contributing to the economics and technological development of the nation. The economic contribution is moderate while the technological contribution is in adequate. The MNC are socially responsible that is to say, they are contributing to the social development of Nigeria. But this contribution was found to be inadequate. Finally, the work was concluded with a recommendation on further research and conclusion of the finding.





A multinational corporation is a company that has subsidiaries in several countries.  Their decentralized structure, as well as their degree size, often allows them to overstep governmental constraints which smaller regional or national companies must observe.

Developing nations attracts multinational subsidiary operations due to a number factors such as cheap labour, low taxation and less vigilance concerning workers rights and environmental protection. They are made to contribute to the social security net (i.e. welfare, unemployment insurance, e.t.c) other factors including low pay for woman workers, child labour, and the absence of labour unions, also combine to make the third world ripe for exploitation.  The presence of multination in these countries improves overall living standards.  The benefits of the relationship are most often one sided, but the economic problems facing these nations makes it difficult for them to be picky about their investor.  Firms become multinational corporations when they perceive advantages to establishing production and other activities in foreign locations.  Firms globalize their activities in foreign locations.  Firms globalize their activities both to supply their home country market move cheaply and to serve foreign markets more directly.  Keeping foreign activities within the corporate structure lets firms avoid cost inherent in arms length dealings with separated entities while utilizing their own firm specific knowledge such as advanced production techniques.   By internalizing what would otherwise by cross-boarder transaction multinationals can bridge the information obstacles that often hinder trade.  For example, they may be able to move carefully monitor product quality or worker conditions in factories they own than in those of contractors, or adapt the composition of output more quickly to change in market condition.

Improvements in information technology have reduced the impediments to exerting corporation control across boarders.  These advances have combined in recent years with an increased openness on the part of government to foreign multination, as the economic benefits of a foreign presence to the host country have become more widely recognized.  These benefits include the increased investment and the associated jobs and income that the multinational firm brings, as well as technological transfer and improved productivity.  The role of multinationals in spreading industry best practices is likely to be especially important services, many of which are not easily traded across national boundaries.

Evidence of the heightened role of multinationals can be seen in the quickened pace of Foreign Direct Investment (FDI)  in recent years in 1991 FDI flows both in and out of other European country development (OECD), reached regard level; over 2.5 percent (%) of their combined gross domestic product (GDP) for in flow and 3.0 percent for outflow.  Most of foreign direct investment is between developed countries, since 1982, 75% (percent) of FDI out flow from OECD countries have gone to other OECD members.

SOURCE: United Nation Multinational Corporation in world development New York (2000).


The main objective of this study is to critically look into the activities of those multinational corporation in their host nations mostly developing nations if their existence has positive or negative impact on the development of the host country.


The research questions for this research are:

  1. a) Are MNC in the country socially responsible?
  2. b) Are MNC contributing to the technological advancement of the nation?
  3. c) Are they contributing to the manpower development of Nigeria?
  4. d) Are the MNC in Nigeria most interested in profit maximization?
  5. e) What impact has the repatriation huge profit to home countries by MNC in Nigeria on the nation’s economy?
  6. f) What effect has the foreign investment of these MNC on Nigeria’s economy?
  7. g) What effect has the operation and existence of these corporations on the local business firms?
  8. h) Are they helping to reduce the unemployment rate in Nigeria?


The following were the significance of this study: –

It will be a source of knowledge expansion to me

This research work will be my contribution to knowledge.

It will serve as source of data for others who may carryout research work on some or related topic in the future.

It will also serve as point of reference to policy makers in their relationship with matter concerning multinationals.

This research work will be a companion to decision makers on foreign investment in the country.  Mostly when the fire of foreign investment is at higher level in the country.


The essay work will cover the following areas of study in terms of the activities of multinational corporation, their roles as an agent of the development, their contribution towards development, the prose and coin i.e. advantage and disadvantages of their activities.  It will also examine their negativity in the area of profit send to their home ration.


Due to the following constraints such as inadequate books or the topic posed a serious constraint on the write up some of the date needed for this write-up are not available at the time this write up services carious out.

It is prominent to note that no one has every thing to himself.  In everything, there arises some constraints, so it is in the case of this essay

Financial problem;  This problem is a great one especially in this present day economy recess in with inflation, sky rocketed prices of materials, where people are struggling to live within their limited resources.  This is especially applicable to a student who depends largely on others, among lost is that of transportation to and fro, the place of research, in some cases would have to trek for long distance.

Time:  Time factor is another constraint, which the writer encountered.  Such as combining class activities i.e. test, assignments, lectures and exams with the project work other include the drudging of read and writing from one item to another in the attempt to accomplish the task.


International Business and international business management.

International business according to John et al (1984) refers to economic transactions that involve several countries, while international business management is simply the management of business transaction between citizens, companies, or governments of two or more nations.

Multinational corporations (MNCs) and multinational management. Kinard (1988) defined multinational corporations (MNCs) as business firms that produce and market goods and services in more than one country. They include giants such as shell, UTC, Royal Dutch, Coca-cola etc. According      to Hicks and Gullett (1981)            multinational management refers to the management of business activities that cross national boundaries. The simple implication of the

above definitions to that MNCs are in international business.

Aharani (1971) noted that there are some debates as to when an organization can be characterized as a multinational. the fact remains that, the organization will have to be headquartered in one country (mostly developed countries) and have to have business operations spread over other countries. For these corporations, the degree of internationalization and international commitment may cover a wide range.