Essay on multinational company in the world

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Essay on Ih Companies Article shared by Kiran Kumari Multinational companies are giant firms with their origin in one country, but their operations extending beyond the boundaries of that nation. For reasons of marketing, financial and technological superiority, these multinationals are generally considered as a sine qua non of the modernisation of an economy.

They have been responsible for the multinatiohal economic liberalisation in Source inthe question of the entry of multinational corporations MNCs has assumed significance. Foreign investment proposals and commercial alliance have esaay signed on an unprecedented compamy, thus giving rise to the controversy whether these multinational corporations are our saviours or saboteurs.


Essay on multinational company in the world

This is so because of the vital difference between the economies of developed and developing nations. This requires that the entry of multinational corporations essay on multinational company in the world India be examined from this angle.

The provision of foreign capital may yield a more adequate infrastructure, but rarely by itself see more rapid development unless there are already multinational company investment opportunities going a begging That is why the intervention of multinational corporations is imperative in the context of the economic growth and modernisation of developing economies where ample investment avenues essay on multinational company in the world open and yet due to lack of capital and technical know-how, these potentials remain unexploited.

Multinational corporations help in reorganising the economic infrastructure in collaboration with the domestic sector through financial and technical help. If we consider the case of our country immediately after Independence, ours was an agrarian economy with a weak industrial base and low level of savings.

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As a consequence of the public sector multinational corporation nexus, from a miniature one, the Indian industrial economy assumed colossal dimensions and India is considered one of the most industrialised nations of the world today. According to them, MNCs are an expensive bargain for a developing economy from the foreign exchange point of view. Second, multinationals evade paying taxes in most countries by concealing profits. Government agencies entrusted with the task of collecting the taxes and scrutinising their accounts are often multinaitonal by them worpd they do not know enough about the industries they are asked to deal with.

The technology provided by them is very often too sophisticated to adopt or too absolute by international standards.

Essay on multinational company in the world

Further, transfer to technology in accordance with resource endowment of LDCs involves high cost and this may prevent MNCs from transferring wold technology to these countries. Fourth, some of the evils of the multinationals emanate out of their oligopolistic character. Collision is the main determinant of its multinationsl policy, which ensures profit at the cost of high level of consumption at a essay on multinational company in the world price.

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Even the impact of high productivity brought about by them through the fhe advancement is not conducive to the working class because of pre-determined level of profit under oligopolistic criterion. Fifth, concentration of economic power is the main charge against MNCs. This economic power is often used to distort national politics and international relations by multinationals.

According to the United Nations a multinational corporation is "an enterprise which owns or controls production or service facilities outside the country in which it is based". There are also a number of oil companies and infrastructure builders from the Middle East. According to them, Essay on multinational company in the world are an expensive bargain for a developing economy from essay on multinational company in the world foreign exchange point of view. The same company invested in the construction of the railway leading to the port Callao, in proximity to the capital of Lima. As a consequence of the public sector multinational corporation nexus, from a miniature one, multijational Indian industrial economy assumed colossal dimensions and India is considered one of the most industrialised nations of the world today. Finally, it may be a direct complement to exports when firms undertake investment abroad to facilitate an enhance distribution of their products. They are the leaders in the field of manufacturing, banking, travelling, tourism, distribution, transportation and so on. Opening of Chinese economy presents numerous business opportunities for many im of industries.

These enterprises build up a power entity of their own. They never hesitate in exploiting the social and political weakness and economic backwardness of the LDCs to their own benefit. It is a mix of virtues and vices, boons and banes.

You add the multinational in company essay on world argumentative

Charges multinationaal against multinationals are serious, yet it also sssay a fact that, despite all these disastrous consequences of their working, multinationals have emerged as the most dominant institutions of the late twentieth century. As such, third world countries in general, and India, in particular, will have to deal with multinationals despite their ugly designs.

Imperial power opened up regions for economic exploitation, managed by the emerging multinationals Cain and Hopkins, Cuba received a large inflow of foreign capital, particularly from the United States. All of the above stated, ensured that experiences of the Central European countries represent one specific unit, which has both political and financial support of the European Union and NATO, and therefore a high level of success. Even if they do, they transfer, not the latest sophisticated click, but obsolete technology. Aims Multinational companies make investments in different countries woeld the following aims. Progressive digression and isolation of existing international essay on multinational company in the world of the region from their direct bases. They had been managed through financial intermediates, and involved individual investment in the shares or bonds essay on multinational company in the world by the over-seas based companies example of the railway. This clearly explain you the effect of the globalisation.

It would not go for foreign collaboration in areas where adequate Indian skills and capital are available. Whenever the need for foreign collaboration is felt worpd areas of high priority, emphasis should be on purchasing outright technical know-how, technological skills and machinery.

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But only if this is not possible, should MNCs be allowed to operate in India? They will reward enterprise and talent; the inefficient would, of course, have no place in the new scheme of things.

When we look at both sides of the issue, it is not difficult to see that encouraging the growth of local companies have several advantages. Finally, it may be a direct complement to exports when firms undertake investment abroad to facilitate an enhance distribution of their products. Essay on multinational company in the world the actual process of globalization, multinational companies play an extremely significant part. Multinationals like Coca-Cola and Pepsi have always been accused of exploiting the underground water resources of developing countries.

Hence, the go here and cry by interested party, who, dub MNCs as saboteurs. Multinational corporations will demand efficiency, punctuality and dedication things which are deadly lacking in national life today.

They will demand a certain work culture from the employees as well as the employers besides offering the best of goods and services to their clientele. They should, therefore, be viewed as saviours of national economy rather than saboteurs because we have seen where our previous policies, have landed us right at the bottom of the list of industrialised nations. The economy has steadily picked up since the liberalisation measures were introduced.

And multinational corporations are the only answer.

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7 Comments
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