Globalization, Development and Multi-National Corporations (MNCs): The Kenyan Scenario

Abstract

This paper examines the globalization phenomenon which has become the real approach for the international economy in the 21 st century. This is evident from the fact that nations have become more interdependent through the flow of goods, services, and financial capital since the 1 970s through the 1980s and presently. The growing importance of industrialization has made the integration into the global economy virtually synonymous with development for a number of nations, Kenya among them. The nature of globalization is in tandem with economic impact of multinational corporations on the Kenyan Economy This study investigates the role of Multinational Corporations through linkages and the enhancement of technology in fast tracking a cross the border transactions. The paper arguably runs through the some of the side effects that are entrenched by globalization in many countries: inequality, poverty, exploitation, sidelining local industries among others. This study submits effects within the context of the state and its role in the process of globalization with particular focus on the Kenyan state and its intersection with national and international policies of economic development. These effects to the home countries of MNCs are often more difficult to identify, for various reasons. However, earlier studies suggest that the effects are generally positive, but the increasing international division of labor within multinationals complicates the analysis. The impact on the home country is likely to depend on what activities these firms concentrate at home. In conclusion the paper recommends how the Kenyan Economy could lead a more focused development devoid of foreign intervention through the MNCs in its Economic development.