Question: Describe the broader ways that international business impacts contemporary development and underdevelopment? Draw on academic literature

Expert answer

In recent years, international business has played an increasingly important role in contemporary development and underdevelopment. Through their activities, multinational corporations (MNCs) have come to exert a considerable influence on economic, social and political processes around the world.

There is a growing body of literature that examines the various ways in which MNCs impact contemporary development and underdevelopment. Much of this work highlights the positive contributions that MNCs can make to economic growth and poverty reduction. However, there is also a recognition that MNCs can often exacerbate inequalities and contribute to environmental degradation.

On the whole, it is clear that international business has a significant impact on contemporary development and underdevelopment. As such, it is important to consider both the positive and negative ways in which MNCs can influence these processes.

Positive Contributions of MNCs

MNCs can contribute to economic growth and poverty reduction in a number of ways. Firstly, they can bring new technologies and management practices to developing countries, which can help to boost productivity and spur economic growth. Secondly, MNCs can create jobs and provide training and development opportunities for local workers. This can help to reduce unemployment and improve living standards in developing countries. Finally, MNCs often invest heavily in infrastructure projects in developing countries, which can help to improve access to essential services such as healthcare, education and water.

While there is debate about the overall impact of MNCs on inequality, it is generally accepted that they can play a role in reducing poverty. For example, the jobs and training opportunities created by MNCs can help to raise incomes for poor households. In addition, MNCs often invest in social projects such as healthcare and education, which can have a positive impact on the lives of the poorest people in society.

Negative Impacts of MNCs