Volume: 8 Issue 10 [October 2025]

Article:The Role of Multinational Corporations in Shaping Global Trade

Author: Kirill Kizub

Volume: December 2025, Volume 8, Issue 10

DOI: North American Academic Research, 8(10), 301-331. doi: https://doi.org/10.5281/zenodo.17969201

Abstract: This paper provides a comprehensive analysis of multinational corporations (MNCs) and their multifaceted role in global trade and economic development. It examines the economic, political, social, cultural, and environmental impacts of MNCs, highlighting their growing influence in shaping global markets and governance structures. The study begins with a historical overview of MNCs, tracing their evolution from early colonial trading companies to contemporary global enterprises, thereby contextualizing their transformative role in the modern global economy. The economic analysis focuses on MNCs’ contributions to global revenue generation, market capitalization, foreign direct investment, employment, innovation, and research and development. The paper demonstrates how MNCs influence global production networks, labor markets, and technological advancement, while also benefiting from and reinforcing globalization processes. In addition, the study explores the political influence of MNCs, particularly their role in shaping international trade policies, engaging in corporate diplomacy, and navigating complex geopolitical environments. The research also examines the cultural and social implications of MNC activities, including their impact on consumer behavior, branding strategies, labor standards, and corporate social responsibility. Furthermore, the paper critically assesses MNCs’ approaches to environmental sustainability, focusing on climate change mitigation efforts and the balance between profit maximization and environmental responsibility. Methodologically, the study employs a mixed-methods approach, combining quantitative data analysis with qualitative insights. Case studies of major multinational corporations—such as Apple, Toyota, and Amazon—illustrate diverse business models, strategic choices, and global impacts across industries. Finally, the paper identifies key research gaps, including the effects of digital transformation, labor practices in the gig economy, ethical challenges, and MNCs’ influence on global policymaking. The study concludes that multinational corporations act simultaneously as drivers of economic integration and sources of complex socioeconomic challenges, underscoring the need for balanced policy frameworks and responsible corporate governance.

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