Analysis of MNCs behaviour in developing and developed countries

Abstract

The expansion of multinational corporations (MNC) and mobility of international capital play a significant role in global market. It is believed that MNCs tend to move their activities to other countries because of market imperfections, where the host market offers advantages over local companies. On the other hand, the attraction of MNCs is highly important for developing countries, as foreign companies encourage innovative technologies, decrease unemployment, and promote technological development. The article explores the behaviour of multinational corporations, defines MNCs’ motives to invest in a particular region or a country, addresses to the problem of attracting targeted MNCs in a country. The research is based on the international survey, methods of expert estimation, and multi-criteria decisionmaking method.