Multinational Corporations, Consequences, International Economy
Multinational corporations are those businesses that have a direct ownership of assets, which they run in more than one state outside their country in which they are built-in, and also they generally retain their headquarters. It means that these corporations have roots in their state. However; they have different branches in many other states where the same products under the same names are produced and consumed. These corporations perform their production, as well as the supply of goods and services in no less than two countries. A multinational corporation produces at least 25 percent of its global productivity outside its state of origin. The ownership of these corporations, as well as their management, gets scattered in all the states that they operate from. They send an enclose of resources, marketing skills, technology, as well as managerial talent in order to perform production in different countries abroad. Most of these multinational corporations are usually located in the Western region of Europe, in Japan and United States. There aren't many multinational corporations located in Africa or the Middle East. There are several leading examples of these forms of corporations such as Coca-Cola located in the USA, Phillips in Holland, Toyota in Japan and Fiat in Italy, as well as so many other multinational corporations all the world.
There has been a remarkable growth of infrastructure, as well as technology, cutting down the geographical obstacles between different countries all over the world, thus connecting these countries and creating mutual dependence between them. Multinational corporations have made it possible for different products that are created in one country to be able to be manufactured and used in other different states.
[...] Multinational corporations happen to be exploitative of those countries that are less developed. They usually tout the international benefits that their presence gives, but it remains a fact that the gap linking the well-off and the underprivileged keeps growing bigger. These corporations also have negative impacts on the surroundings. Multinational corporations have a bad reputation for leaving behind a huge carbon footprint every time they get into another state that do not have strict environmental regulations. This pay no attention to the environment, whether by means of emissions of greenhouse gas or polluting local habitats, poses a major negative effect from the cost of performing business. [...]
[...] These investments offer the required management skills that increase production, and it creates employment, as well as offering training to the members of staff. The trade within the multinational corporations accounts for more than one-third of entire international trade. The multinational corporations also boost the economic resources around the world. This happens when different multinational corporations from outside start their enterprises in a certain country, for instance, in Malaysia, and the foreign currency exchange in this country will elevate the global economy indirectly. [...]
[...] These corporations contribute significantly to the international economy. Through foreign direct investment, savings are then moved from the developed states to the developing world. Those developing states usually have a very low savings, and the foreign direct investment gainfully adds to the resources accessible for physical investment. Multinational corporations also pass on managerial expertise to the developing states. Through their great knowledge of managing large corporations allows their personnel to manage production, as well as coordinate the activities of various businesses more proficiently than the host state managers? [...]
[...] Therefore, the multinational corporations practice their business scale at an international level. The second feature of these corporations is that all multinational corporations get drawn into the production and supply of goods and services on a global level and in different countries. Every good and service that they present are usually under the same brand name all over the globe despite being manufactured and supplied in different countries. The foreign countries in which the products are manufactured follow most of the production processes and marketing strategies and even packaging in almost the exact way it is performed in their headquarters in the country of origin. [...]
[...] Apter, D. E., & Goodman, L. W. (1976). The Multinational corporation and social change. New York: Praeger. United States., & Gaston, J. F. (1973). The multinational corporation. Wash: U.S. Dept. [...]
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