Abstract
Over the past years, globalization has been termed as the new world order that has transformed the pattern of global affairs. On the forefront of globalization, are the MNCs which have played a major role in defining international economic relations. Through their massive FDI flows they are destined to change the fate of ailing nations. This paper reconsiders MNCs as international cohesive non-state actors in influencing politico-economic spheres of developing countries. The debate of whether MNCs have proved to be the saviors or the predators for the developing countries is as old as the existence of MNCs. This paper will focus on the theoretical framework of MNCs, their structure, and their negative and positive impact upon the developing world. The emphasis here is on tracing the historical evolution and characteristics of MNCs. Furthermore, the case study of Pakistan is also included to observe the pattern of economic development through foreign investments.
Keyword(s)
MNCs, developing states, Globalization, FDI, oligopoly theory