Multinationals have emerged as very powerful economic forces. A multinational corporation is simply one which owns or manages a business in two or more countries. Normally, in their pure forms the multinationals manufacture various goods in many countries, sell to world markets, draw management from several nations and are owned by shareholders around the world. Examples: Shell Unilever, IBM, Nestle, Coca-Cola, ITT [International Telephone & Telegraph]. Hindustan Lever Ltd; is considered to be the largest MNC in India, with more than Rs. 10,000 crores of the sales, provide employment for only 36,000 people. The MNCs which are motivated by only profits destroy employment opportunities. It has been observed that the MNCs whether in India or elsewhere, does business not for promoting job opportunities or generating employment, but only to maximize their profits. MNCs in the Indian context have the following impacts : Cause Unemployment: MNCs in the Indian context has added to the problem of unemployment. Conflict theorists have branded multinationals as irresponsible exploiters who export jobs from the home country to the poor countries. Where they can exploit the unorganized labor of the people. For instance; The Wimco Company manufacturing match boxes made 55,000 families in Shivakashi and other places in Tamil Nadu lose their jobs. MNCs Destroy the Small Scale Industries: The MNCs with their huge capital, wide business network and attractive advertisement techniques provide a tough challenge for the small scale industries. As a result, the small scale industries find it very difficult to sustain themselves. The MNCs which plays on the economic weaknesses of the small scale industries ultimately destroys them. It is said that these MNCs have been directly or indirectly responsible for the closure of more than 3 lakhs small scale industries and another 3 lakhs handloom as well as powerloom units. By destroying a number OS small scale industries, a by way of their sales network, these MNCs take home every year, on an average more than Rs. 50,000 crores. About 200 years ago, there was one MNCs by name East India Company, and today there are more than 4,000 MNCs actively engaged in weakening the indigenous industries and looting the country's wealth by way of profit. Consumerism and Cultural Invasion: These companies have made people to become crazy over new things. They manufacture certain luxurious commodities such as chewing gums, soft drinks, cleaning synthetics; cosmetics such as face creams, shampoo, hair oil, lipstick, etc. And through attractive advertisements bring heavy mental compulsions on people to purchase these. This tendency has led to unwanted consumerism. Further, by introducing Western styles, practices, values, etc., they have virtually launched a type of cultural invasion against the national cultures. Danger of Aid and Death Trap: The multinational companies are making huge profits. They now represent a disturbing concentration of unscrutinised political and economic power that they may have may adverse social impact. The type of financial and other help which these companies are giving for the underdeveloped and poor countries has been proving to be a death trap from which they find it difficult to come out. India too is experiencing such an unfortunate situation.
