THE IMPACT OF PUBLIC LIMITED LIABILITY COMPANIES ON UNEMPLOYMENT REDUCTION IN HOST COMMUNITIES
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The main players in a global knowledge-based economy are corporations (MNCs). The Dutch East India Company was the first multinational corporation in the world and the first company to issue stock (Mondo, Visione, 2008). It was also arguably the world’s first mega corporation, possessing quasi-governmental powers, including the ability to wage war, negotiate treaties, coin money, and establish colonies, Ames, Glenn.J. ( 2008). The history of multinational corporations in developing multinational countries is marked by its origins in policies of imperialism and Colonialism. Nigeria as a developing country has played host to MNCs long before independence till date. The number and activities of these MNCs have grown over time as Nigeria struggles to develop socio-economically as a nation Onudogo (2013).
Multinational corporations are those powerful conglomerates that came into being in Nigeria after the abolition of slave trade, Aworom(2013). As a result, the European countries needed a market for surplus products and place to access cheap raw materials and labour, Africa especially Nigeria became the obvious destination. They dominated the Nigerian economy after her independence. Consequently, today, Multinational Corporations like the United African Company (UAC), Toyota motors, Coca-Cola, Lever brothers, Mobil oil; Shell BP etc. dominate the landscape of Nigerian economy. These corporations are very rich in all ramifications because of the profit they make in Nigeria. For instance, Nigeria is one of the largest producers of oil in the world which accounts for over 80% of her income. Since this sector of the economy is effectively controlled by multinational corporations who make enormous profit from the industry, one expects that they should spearhead the developmental process of Nigeria but unfortunately the reverse is the case.
Most of these corporations have been fingered on several occasions playing active roles in the under development of Nigeria.
These corporations are distinguished on the basis of their orientation into "ethnocentric" (home-country oriented), "polycentric" (host-country oriented) or "geocentric" (world-oriented), Bernadine (2003). International business is the spur for multinationals and both are currently boosted by the wave of globalization. The concept of globalization has given impetus to multinational corporations/enterprises to
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