Multinational corporations - Saviours or saboteurs
Multinational corporations – Saviours or saboteurs
Globalization is not a new concept for anyone. It has allowed the various countries to opt for the international business, trade and investment. It is more of the cross border trade relations. In this whole world of globalization, the trend of Multinational Corporations was started. These are the companies who form the base for the increased global transactions and foreign trade. MNCs carry out their operations in more than one country. In this fast changing world, what do you think, are multinational corporations’ saviours or saboteurs?
Saviours
• MNCs are the way to carry out the cross border trades or attract the foreign currency to the country.
• Multinational Corporations are creating endless jobs for the unemployed people in the developing countries.
• The products and services provided by the multinational corporations are of high quality and at the most competitive rates.
• It enhances the economic globalization leading to an improved per capita GDP growth and narrowing the gap between the various sectors.
• It results in the better relations between the different countries and enhances the economic interdependence of national economies through the transfer of trades, services, capital and technology.
• It encourages mergers and acquisitions helping the companies to achieve the economies of scale.
Saboteurs
• The multinational corporations are more concerned about their own profits, no matter if it comes at expense of consumer’s interest.
• Multinational corporations are large dominant players that become a real threat for the small firms in the developing countries.
• The multinational corporation can even strengthen their economies of scale that can cause a potential harm to the local economy of any developing country.
• Multinational corporations are well known for exploiting the labours as they don’t pay them enough wages and salaries.
• The drawback is also seen in the tax segments where they are not liable to pay the taxes in the operating countries.
Conclusion
Like everything, multinational corporations have their equal shares of pros and cons. At some points, they are the best option and at some places are not at all acceptable. However, with the globalization it is necessary for the developing countries to encourage cross borders trades and that is possible only when the multinational corporations are allowed to operate in the country. It is best for the developing countries to accept them, but with some set of rules and restrictions, so that no undue advantage is taken by the companies on the cost of local people or economy.
Discussion
- RE: Multinational corporations – Saviours or saboteurs -Deepa Kaushik (06/21/14)
- MNCs are undoubtedly the saboteurs for the developing countries. These are slowly eating up the economy of the developing countries by getting their way in through lucrative job opportunities. They pretend to be helping out in solving the unemployment and providing sufficient income to the citizens of their host countries, but the actual scenario differs when we carefully analyse the employment status in their own country as compared to the host countries.
Though the wages are above the average income of the citizens within the developing nations, still these MNCs indirectly make people as bonded labours getting the best and fullest out of the employee with a meagre income. The employee rules differ immensely as compared to their own citizens. Also, the extra benefits are totally cut down, getting overtime done within the same wage.
This is posing as a great threat to the economy and the freedom of the country. These MNCs have gained confidence and attracted the poor citizens with their lucrative offers, and the developing countries own employment opportunities suffer due to lack of manpower. This greatly affects the revenue for the country, instead they work to generate revenue for some other nation.
With such a great danger of letting some other nation taking over our economy, the MNCs can no more than a saboteur.
- RE: Multinational corporations – Saviours or saboteurs -divya (06/21/14)
- I m totally agree that the mnc's are saboteurs be oz they only want is to raised their living standard.
They doesn't worry about the people's economy condition but before we reached at their standard we have raise our standard to compete with them.
