Multinationals corporations can help in improving the structure of the economy by bringing in foreign direct investments which are a much-needed resource in developing countries. Technology is brought in the host country because the existing technology might not be efficient for production. In this way, developing countries can have access to better and efficient technologies. Besides economic gains, multinationals can also have a positive impact on the welfare of developing countries. Jobs would increase boosting the national economy and resident income. Increase in income will lead to an increase in tax bases and increased government expenditure. For example, the investment of information technology in India has led to increased income of residents and increased capital expenditures. Positive impacts of MNCs can help developing countries rise in the world.
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