A multinational company (MNC) is a business entity that operates in several countries, with the aim of optimizing operations and expanding its market share. The impact of MNCs on local economies is significant and varied. In many cases, they can be a driving force for economic growth, although they often pose challenges for local communities. Investments made by MNCs usually bring significant capital into the local economy. This creates new jobs, which contributes to reducing unemployment rates. With more jobs, people’s income will increase, which in turn stimulates purchasing power and encourages the growth of other sectors in the economy. However, the existence of MNCs is often accompanied by business practices that can cause problems. For example, MNCs can sometimes dominate local markets, making it difficult for small and medium-sized companies (SMEs) to compete. These impacts can reduce economic diversity and create potentially risky dependencies on one or a few MNCs. On the positive side, multinational companies often bring better technology and managerial expertise. This technology transfer can help local companies to increase efficiency and productivity. Additionally, MNCs often apply high standards in terms of product quality and business practices, which can encourage local companies to adapt and compete in global markets. MNCs also contribute to the development of local infrastructure. In many cases, they invest in profitable infrastructure projects, such as roads, ports, and communications facilities. This not only supports MNC operations but also provides long-term benefits for the wider community. However, the environmental impact of MNC activities cannot be ignored. Unsustainable business practices can cause environmental damage, including water and air pollution, as well as loss of biodiversity. Therefore, it is important for governments and society to monitor MNC activities and ensure that they comply with strict environmental regulations. MNC involvement in corporate social responsibility (CSR) is also noteworthy. Many MNCs invest in social programs that support education, health, and community development. This not only improves the company’s image but also has a real positive impact on society. In conclusion, the impact of multinational companies on local economies is complex and can have both positive and negative effects. So that the benefits can be felt optimally, collaboration between government, companies and society is very important. Strict regulations and healthy cooperation will help create a sustainable and profitable business environment for all parties involved.