countries’ resources to look for foreign opportunities caused by imperfect markets. Product cycle theory makes big corporations become multinational corporations when big corporations saturate the domestic market in the United States and the demand of their products becomes lesser and lesser in the home country. The stages of product cycle theory are growth, maturity and decline. Once market decline happens in the home country, these big corporations will now export their products to foreign countries and eventually will give them the idea to set up manufacturing facilities in foreign countries where they market their products. Overtime, MNCs will grow in foreign markets and after several years, the market demand will decline so the MNCs will seek again other foreign markets to sell the MNCs’ manufactured goods. I believe that the wealth of United States’ MNCs will help us in many ways most especially in globalization and urbanization of many countries of the world. The major influences of MNCs in our lives whether it is for better or for worse are undeniably advantageous for all of us because these multinational corporations generate thousands of employees wherever they expand their business. Standard of living of people is being uplifted as well as GDPs of the host countries can increase because of the MNCs’ investment through Foreign Direct Investments (FDIs). Out of the 100 largest economies of the world, 51 of them are MNCs and 49 of them are countries. MNCs affect the rights of others because they can be engines for positive change when their concern is for the social good of the host country and uplifting the standard of living of their employees strictly following Corporate Social Responsibility (CSR). On the other hand, MNCs can become engines for negative change when their main concern is to increase the investors’ wealth and their only motivation is how to make large profits being not concerned about the environmental protection of the host country’s population.
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