Final answer:
Critics believe that MNCs are drawn to developing countries for their ability to exploit cheap labor and relaxed regulations for profit maximization, despite offering better benefits than local businesses.
Step-by-step explanation:
Critics of modernization argue that multinational corporations (MNCs) are attracted to developing countries because they can exploit cheap labor and lax regulatory environments to maximize profits.
MNCs can afford to offer higher wages and better benefits than local businesses, but critics point out that the wages are still low by the multinational's standards and workers' rights can be undermined, including the suppression of union formation and long working hours in potentially unsafe environments.
Moreover, MNCs often influence host governments to maintain favorable conditions for their operations, potentially at the expense of the country's socio-economic development and environmental protection, leading to claims of neocolonialism.
Despite this, MNCs do provide job opportunities and can play a role in economic growth by reinvesting in local communities, suggesting a complex impact on developing economies.