Question

1.Multi-National Corporations (MNCs) are known to be key players in the industrialisation of developing countries. Account for why Ghana attracts MNCs and discuss their contributions to the nation’s industrialisation efforts.

Answer 1

                                    Multi-National companies refers to such firms that have a centralized headquarters and offices across the globe with worldwide operation and global management. Since a Multi-National Corporation has operations on a global scale, it imparts may advantages to a developing nation especially in its development. It plays a major role in increasing the investment patterns of a nation and thus ensure that employment levels of a nation is increased and the income levels are proportionately improved. They also contribute to the rapid process of development throughout a nation with contributions in transfer of technology, financial management and other factors.

                                    Ghana encompasses various potential benefits which has been instrumental in attracting various MNC’s towards itself. The gold production of Ghana is one such sector with the country meeting more than 10% of the global needs. With lower technological development, the country depends on foreign investment in processes such as exploration and manufacturing which means that more Multi-National corporations gets attracted. Coca, gold and oil are the three major sectors that contributes to about one-fifth of the GDP of the nation. Although it has been blessed with various natural resources, the low-skilled labour potential has been an issue. Thus, the development of the economy of Ghana has been always dependent on foreign contributions, especially in the skilled jobs. The MNC’s have made substantial contributions in the areas of technology transfer and labour availabilities.

                                    Majority of the foreign contributions of Ghana have been concentrated on mining and industrial sectors. The Mining code, Investment code and the Free Zone act were also implemented to attract various foreign investments in Ghana. The MNC’s have played a major role in resource utilisation and mobilisation which has lea to generation of employment and has helped in attaining industrial and technological development in the nation. With contributions through Corporate Social Responsibility [CSR], they have been able to make developments in the socio-economic patterns of the nation. Although most of the MNC’s focus on their economic gains, they have, in the long run helped in the development of the domestic economy also with improvements made in the employment patterns and local investment patters and the story of Ghana has been no different.