Abstract
Relationships between multinational corporations (MNCs) and developing nations are known to have benefits as well as costs, particularly for the host country. The purpose of this study was to investigate the perceptions of managers on the effects of MNCs on a developing nation. Using a sample of 1344 Arab and non‐Arab managers in Kuwait, the authors find the respondents perceive positive effects of MNCs on the business‐economic, legal‐political, and technological environments of the country. However, the effects of MNCs on the social‐cultural environment in Kuwait are perceived as negative. The authors recommend that MNCs operating in Kuwait be sensitive to these perceptions to ensure harmony in future business ventures.
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