Globalization is detrimental to the health of the residents, culture and environmental safety of the developing countries. Moreover, a greater opportunity for economic exploitation is provided to the multinational corporations by the process of globalization. The third or developing world is exploited by these entities to a major extent. The preference for undeveloped regions is due to the fact that environmental and other laws can be circumvented easily (Smith and Doyle). Another, benefit that the developed world enjoys in such regions is that it can impose its culture, lifestyle and other characteristics of its society. In addition, the environment of a third world country where a multinational corporation commences operations undergoes significant damage. However, such damage is ignored by these countries, because of the substantial wealth that flows into the country. Globalization induces the multinational corporations to foray into nation after nation of the third world. These initiatives are prompted by the search for cheap labor and resources. In addition, to exploiting the resources and manpower of these countries, the multinationals interfere and influence the policies of the country (Smith and Doyle). Thus, a congenial atmosphere for exploitation by these corporations is ensured.It should be clearly borne in mind that the power of the multinational corporations is ubiquitous, and they wield vast influence over the international bodies, such as the World Bank, International Monetary Fund and the European Union.
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In the paper “Globalization Enhances the Influence of the Multinational Corporations” the author analyzes globalization in terms of its effects on the health of the residents, culture and environmental safety of the developing countries. The third or developing world is exploited by these entities…
The impact of globalization on the multinational corporations Introduction Reich (1998) defined globalization as a process through which the activities done in one part of the world affects people on other parts of the world (Reich, 1998, p. 5). It is difficult to define globalization in few words because of the complex parameters involved in it.
While this enhances better skilled people it also has helped in containing costs as expansion has been extensively taking place in the emerging economies. The emerging markets are those that are between the developed and the developing nations. Emerging markets offer tremendous opportunities for the multinationals as the emerging nations enjoy tremendous potential for growth and development.
There are many multinational corporations in the world today. For instance coca cola, Barclays, shell, Guinness Breweries, DHL, IBM, MTN and others. The presence and establishment of MNC in developing countries has brought a lot of debates all over the world.
Very many companies are now becoming multinational enterprises to capture the international market that is growing day by day. The local enterprises are also struggling to catch up with the trend of globalisation for them to become more competitive. On the contrary, the global concept in business is very misleading as there are very many challenges.
the ability to produce the goods and services at lower costs.
An example of Multinational Corporation is the Coca cola Company which is the largest beverage manufacturing company in the world. The company has been in existence since 1892 and manufactures, distributes and markets non-alcoholic beverages and syrups globally.
As a broad concept, globalization refers to the emergence of a global society where economic, political, environmental, and cultural events in one part of the world quickly come to have significance for most people around the world.
Globalization has resulted to most advances in communication, transportation, and information technologies.
Changes in interest and exchange rates directly affect profitability of companies having international business by influencing their investment decisions, production costs and prices. High interest rates are associated with higher business risk and make cost of capital more expensive, thus reducing profitability and amount of business investments in the region over a long-run period.
realist point of view, instability is prevalent in some countries as they attempt to join the global market being the main cause; however, a liberal’s argument on the matter is more rational because it depends on local strategies that extend to the international environment.
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