The Allure of the Developing World to Multinational Enterprises – Research Paper Example
The paper "The Allure of the Developing World to Multinational Enterprises" is an excellent example of a research paper on macro and microeconomics. Many multinational enterprises have become more actively involved in investing in the emerging markets that are found in the developing world during the period running from 2011 to 2012 (Poel, 2011). A few proportions of the multinational companies have lagged behind in investing in the developing world while some have completely abstained from the activity. Many multinational companies have increased their investments in the developing nation thereby helping them increase the gross domestic products(GDP’s), their employment rates and their foreign exchange earnings (Poel, 2011). The developing countries have also benefitted through the development of industries within their countries. For example, the French multinational company, Arc International has developed production industries in countries such as South Africa, Brazil, and India along with certain other countries in Africa such as Angola. The actions of the multinationals in the developing nations have brought about increases in the countries growth rates as a result of the taxes they pay their hosts (Poel, 2011). The activities of the multinational companies in the developing nations have seen the discovery of various products that were previously not known to be existing in them. For example, the activities of several oil multinational companies in countries such as Brazil, Kenya among others (Poel, 2011). However, the multinational companies have encountered problems in the quest to invest in the developing nations which have constantly increased rates of inflation, energy and food prices. Despite the fact that multinational companies have also experienced growth in their own economies due to their activities in the developing nations, they face high political and economic risks in these countries (Poel, 2011). For instance, multinational companies such as the oil companies who have been heavily investing in the Middle East and the North African region face the above-stated problems. This is due to the recent political uprisings that the countries within the region have encountered (Poel, 2011).