Multinational companies (MNCs) are corporations that operate in at least two countries, one of which is outside the corporation's 'home' country.
The 'white revolution' in Punjab, India, is an example of the complex relationship between multinationals and host countries. The white revolution refers to the replacement of traditional cultivation of wheat-paddy crops by dairy farming. This change was encouraged by the government, as it held the promise of improved profit margins for farmers.
The transition was accelerated by several multinationals that source milk in the region, including Nestlé, Danone, and GlaxoSmithKline. These companies have contributed to the development of milk production by providing infrastructure, like communal chilling facilities, that allow farmers with only a few cows access to refrigeration needed to conserve milk.
The development of the dairy industry in Punjab has recently become more controversial, as the region has experienced drought conditions. Raising and feeding cows requires enormous amounts of water, and farmers are using up groundwater supplies faster than they are replenished. The multinationals are working with local farmers to face up to these challenges through education and water management programs. Nonetheless, it is uncertain whether in the longer term the 'white revolution' will be seen as a positive or negative for the region.