Final answer:
True, some developing countries require multinationals to partner locally, inclusive of benefits like technology and profit sharing, and criticisms such as unfair wages and cultural dominance.
Step-by-step explanation:
True, some developing countries do require a multinational to have a local partner when conducting business within their borders. This arrangement is often part of a strategic effort to ensure that local industries and economies benefit from the presence of multinational corporations (MNCs). By requiring a local partnership, developing countries aim to gain technology transfer and managerial know-how, while also ensuring that a portion of the profits remains within the country.
While MNCs can bring to developing nations better employment opportunities with higher wages and benefits compared to local businesses, there are also notable criticisms. These criticisms center on the gap between what MNCs can afford to pay and what they actually pay, the restriction of workers' rights such as the formation of unions, and the unsafe working conditions that may prevail. Furthermore, the cultural influence and economic dominance of these businesses have led to claims of neocolonialism.
The presence of MNCs in developing countries is a complex issue with both positive aspects, such as contributing to economic growth and development, and negative impacts, including potential exploitation and loss of cultural identity. International agreements and dialogues, such as those facilitated at forums like the World Economic Forum, aim to address the challenges and opportunities associated with globalization and the activities of MNCs.