The corporate structure of multinationals has directly contributed to the rapid rise of their profits and it is more convenient for them to raise funds from the stock market. The cross-border chain of manufacturing, marketing and distribution help them offer commodities at lower prices to their home country and boost the economic growth there.

In the 1990s, the United States enjoyed high economic growth with low inflation and a low interest rate. Such an economic prosperity could not have been achieved without the US multinationals setting factories in Asian countries and exporting their inexpensive commodities back to the US.

All these contributions used to win considerable supports for MNCs from their home country. But such supports have begun to be questioned by the public in developed countries in recent years.

With mature industrial structures, developed countries would see very close ties between industrial giants and small and middle-sized businesses. Smaller businesses won a considerable portion of benefits from such cooperation.

When the leading companies develop into multinationals, they would usually contract their businesses to overseas branches or foreign partners at lower costs to gain more commercial returns. Thus, smaller businesses in developed countries have less commercial opportunities. Some fire employees, others cut salaries and a few even go bankrupt.

It is against this background that politicians in developed countries began accusing developing countries, especially the emerging markets, of stealing their jobs through unfair competition.

From the perspective of developing countries, multinationals not only establish factories, but also transfer new technologies. They offer better payment than local businesses, which promotes income growth and improves the purchasing power of common people.

Of course, there are also voices from developing countries accusing MNCs of introducing pollution. There have been cases in which MNC projects have been boycotted by local residents for fear of health risks.

As globalization intensifies, the businesses in emerging markets begin their efforts of going multinational. Businesses from China and India invested in several other countries and this was soon noted by the media in developed countries.

Some of these media outlets accused the new MNCs of occupying overseas resources. Such accusations are actually out of their worry that they might pose threats to the MNCs from their own countries.

Whether from developing or developed countries, the multinationals could create more jobs and wealth to their host countries and contribute to the local economy.

It is true that MNCs have widened the income gap between their home countries and their host countries because of their complex internal transfer mechanism and other characteristics.

Yet, globalization makes it possible that developed and developing countries enhance their cooperation and find a better means to strike a balance between the growth of MNCs' commercial returns and their contribution to the improvement in the lives of disadvantaged groups in the global community.

The author is a researcher with the Development Research Center of the State Council.