Challenges Facing MNCs towards Improving Socio-Economic Development of Residents in Nandi County

International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue IV, April 2020 | ISSN 2454–6186

Challenges Facing MNCs towards Improving Socio-Economic Development of Residents in Nandi County

Laura Imungu Kedode¹, Professor. Pontian Godfrey Okoth², Dr. Susan Kimokoti^3
1,2,3Department of Peace and Conflict Studies, P.O Box 190-50100Kakamega – Kenya

Abstract:-A Multinational Corporation (MNC) is an enterprise that engages in foreign direct investment and owns and controls activities in more than one country. MNCs have multiple facility subsidiaries, a common strategic vision and resource pool with foreign nationals placed in key management posts. Quintessentially, studies show that MNCs can hamper economic growth as well as serve as agents of imperialism in the economies where they operate, contrary to expectations, where residents and governments expect positive development in the economies of the regions where they operate. The study sought to evaluate the effectiveness of MNCs towards the socio-economic development of residents of Nandi County. However, the study found out that, MNCs in Nandi County were facing a number of challenges. The study concludes that there are factors hampering the effectiveness of MNCs towards the socio-economic development of the residents of Nandi County. Unfavorable weather, fluctuating tea prices and wages as well as union demands have hampered too the effectiveness of MNCs’ work in Nandi County.

Key Words: Multinational Corporations, socio-economic development, Nandi County

I. INTRODUCTION

A Multinational Corporation (MNC), also called a Transnational Corporation (TNC), is an enterprise that engages in foreign direct investment and owns and controls activities in more than one country. It typically has multiple facilities subsidiaries with a common strategic vision and resource pool and often places expatriates in key management posts. An MNC can also be defined as a firm that owns or controls income-generating assets in more than one country (Erwee, 2007), (Fieldhouse, 2000). Okoth (2012a), defines Transnational or Multinational Corporation (T/MNC) as an enterprise which manages production establishments or delivers services in at least two countries. It is also a company engaged in economic activities and opportunities beyond its borders, and which lobbies foreign governments about trade (Okoth, 2012a). In 2016, Mbukwa defined MNCs based on their activities and ownership. He defines a multinational corporation as “an enterprise that engages in Foreign Direct Investment (FDI) and owns or controls value adding activities in more than one country” (Mbukwa, 2016).

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