Final answer:
Multinational corporations offer economic and strategic benefits in host countries by providing higher wages, influencing policy, and enhancing standards of living with new technologies and quality consumer goods.
Step-by-step explanation:
Multinational corporations (MNCs) have the potential to give an organization political and legal advantages in a country because the organization will be identified as a local company. The presence of MNCs in a developing country often translates into higher wages and improved benefits for local workers compared to local businesses. By generating significant economic activity, MNCs wield considerable influence over host governments, and can encourage the adoption of practices that uphold human rights and environmental protections.
Moreover, when these corporations invest in local infrastructure such as roads, powerlines, and factories, there is a positive spillover effect on the local economy, including the expansion of support industries. The introduction of new technologies and skill development also contributes to the betterment of the local workforce, which in turn can draw further investment and economic growth. MNCs such as retail giants that establish branches internationally also enhance the standard of living by providing high-quality consumer goods at competitive prices, thereby raising the local standard of living.
In the broader scope of globalization, multinational corporations can utilize their economic clout to not only influence local markets but also to potentially shape legislation and policies in their favor. Such strategic presence allows MNCs to be viewed favorably as local entities, yielding both economic and strategic benefits that can place them at an advantage within the global market.