Impact of Multinational Corporations on Developing Countries

Impact of Multinational Corporations on Developing Countries Introduction For too long, citizens have been content to follow where government and multinational corporations lead. The profit motive has become immune to attack. It is understood that as long as something is profitable for shareholders, nothing else matters enough Occupy Protester CTV Op-ED RT News. The word Multinational is a combined word of Multi and National, which when combined refers to numerous countries. A Multinational Corporation is a corporation that has its facilities and other valuable assets in at least one country, which is other than its parent country. It is a organization or company that both produces and sells services and goods in a multitude of countries. Some MNCs have a budget which is greater than some small sized countries GDPs. [1] Some of the major examples of MNCs today are Nokia, McDonalds, Microsoft, Exon Mobile and BP. One of the initial MNCs was the East India Company (1600 1874), which is an excellent examples of both the benefits and drawbacks of such ventures. On one hand there existed a dynamic profit making entity, on the other existed a company operating on foreign soil, under very little control of the British government, having, operating and running their own private armies, utilizing military power and ultimately taking over administrative functions of India. MNCs have come a long way since then and have seen a sharp increase in the past few decades. The numbers of active MNCs went from being roughly 7,000 in the 1970s to 78,000 in 2006, being responsible for over half the global industrial output. [2] Multinational corporations usually bring with them foreign direct investment, which is direct investment in a country by the company for expanding their existing business base or for buying of raw goods and inputs from them. Multinational corporations were the vital factor in globalization, where local and national governments competed against each other in order to incentives and attract more MNCs and ultimately, investment in their countries. An example of such incentive is the Free Trade Zones, where goods may be manufactured, handled, landed or even exported without any intervention of the local custom authorities. Most of these free trade zones exist in developing countries such as Pakistan, Mexico, Sri Lanka, Madagascar, Brazil and India, as they are eager to attract more foreign investors. [3] Definition of MNC: Economists are not in unanimous agreement as to how best define trans or multinational corporations. Most MNCs are multidimensional and can be viewed from a multitude of perspectives. These include: Ownership, strategy, management and structural. According to Franklin Root (1994), that though some argue that ownership is the key criterion amongst all of the above, a firm truly becomes multinational given its parent company or headquarter is run/owned by nationals of varying countries. Examples that fit this category are Unilever and Shell, which are owned and run by Dutch and British interests. However via this test, very few companies would fall under the banner of being a true Multinational company, rather most are uninational. According to Howard Perlmutter (1969) [4] multinational companies might pursue either world oriented, host country oriented or home country oriented policies. He uses these terms as geocentric, polycentric and ethnocentric, however the last is misleading since it focuses upon ethnicity and race, but most countries are themselves populated by a variety and mix of races, whereas Polycentric means the MNCs operations only take place in a couple of foreign countries. Franklin Root (1994) [5] states that MNC is a parent company which: Shows implementation of strategies of finance, marketing, staffing and production in its business. Has direct and binding control over its affiliates and their policies. Uses those affiliates to conduct foreign production in several countries. Advantages of MNCs Increased Investment: The primary argument in favor of MNCs is that they enable investment into less developed countries which is essential for their growth. According to this argument, there exists a huge gap between the optimal investment levels and the levels of savings in a country. This gap can be minimized via foreign direct investments, i.e. transfer of resources from a foreign source in the form of economic injections. Technological Transfers: Another important aspect is the issue of technological transfer. Any MNC operating in a certain country needs to have an agreement with the host country about its operating guidelines. This can be both beneficial or harmful, depending upon the negotiations. If done right, the MNC would agree to a transfer of technology which would turn out to be very beneficial for the host country, since technological advancements require huge research and development funds that the developing countries just do not have. So it makes sense for them to open up their markets in exchange for a technology that could make them self reliant and self sustaining. Transfer of skills: Like a transfer of technology, MNCs also bring with them a wealth of knowledge and experience. Their staff is amongst the best in the world and employees from the less developed countries learn plethora of skills from them, enabling them to train others and have a trickledown effect. Foreign firms pay for and provide world class training to its employees and stimulates intellectual as well as capital growth. Trickle down effects: MNCs, via their broad investments enable linkages backward, forward and horizontally. Not only does the MNC provide a FDI, but it also benefits companies that it collaborates with, such as industries that produce complementary goods. The service industry also benefits via the increase in investment. It creates additional demand and improves infrastructure abilities. Increase in Tax revenue: An increase in tax revenue is also an added benefit, since the host country gets to tax them and includes it in their public revenue. This can be used to finance projects that lead to development of infrastructure, causing economic development. Reduces gap between capital and labor: Less developed countries are also highly labor sensitive. As in the ratio of capital to labor is very low. MNCs employee vast numbers of the local population reducing this gap, creating jobs and employment and revenue means for the populace. There are two effects, direct and indirect. Job creation is direct, while the increased stimulus in demand and supply is the indirect employment effect. Encourages competition: This investment encourages entrepreneurship and breeds a culture of competition, increasing competitiveness amongst local companies, causing them to improve their own goods and services by increasing their efficiency and ultimately quality in order to better compete. Improves Balance of Payments: An added benefit of foreign direct investment is that it helps the Balance of Payments of both, the capital and current accounts, of the host country. Criticism of MNCs: Multinational corporations do control. They control the politicians. They control the media. They control the pattern of consumption, entertainment, thinking. Theyre destroying the planet and laying the foundation for violent outbursts and racial division. Jerry Brown There are two sides to every coin, and this is no different. Critics of MNCs state that the cons far outweigh the pros that MNC involvement brings to host countries. The primary concern for them is the high levels of unmonitored influence these companies have on host countries. Colonialism: MNCs are seen as a offshoot of western colonialism, albeit in a more subtle manner. Far from improving the balance of payments on both the current and capital accounts, critics argue that MNCs worsen it. This they argue happens when the profits are repatriated to their own countries. Though the local governments may come to an agreement that a certain portion of their inputs be bought in the local market, this however may come at a cost with negative impacts upon the less developed countries current accounts. Unmatchable influence: The power, influence and reach of these MNCs have enabled them to have considerable and highly influential affect on the political dynamics of numerous governments and their countries. The MNCs have been known to use this influence to pressurize governments into letting them become more competitive via the implementation of national policies that is conductive to their end goals, which is ultimately a hefty profit. One major drawback of such reforms is a vast decline in any socio-economic reforms. The regulation and responsibilities of states is growing in number as MNCs continue to expand economically and geographically. A set of new difficulties have taken rise as MNCs continue to take over most economic activities. Today, they outnumber states in terms of size and power. General Motors is an outstanding example to explain this phenomenon. The MNC is run at a scale larger than seven nations together. The power it has in terms of economics and politics, allows it to control a huge chunk of the world. Hence, it is worthwhile to note that since the 1990s when there were only 3 MNCs controlling the worlds economies, the number jumped up to 15 within the span of 10 years. Their large investment portfolios make MNCs a powerhouse when it comes to the negotiating table and most developing countries cannot match up to their level, enabling the MNCs to get the upper hand. This leads to them coercing the government into implementing policies that favor their needs at the expense of the local industry and market. Technological fraud: Technological transfer agreements are not always kept, and when kept they are usually skewed in favor of the MNC. Even though most do not agree to a full transparent technological transfer, even if that comes to pass, the technology passed onto the country is usually obsolete in nature or is patented so it would be of little use to the host country on a global scale. Little or No accountability: MNCs comprise of international bodies which function beyond the state authorities, in terms of decision making power and the power they hold over monetary assets. Though this legitimate challenge has been out there for thirty years now, yet only slight developments have been noted in terms of accountability. The old-fashioned regulatory body and the MNCs significant economic and political power have resulted in a clash which makes the regulation of states turn into a major problem. The MNC has surpassed the national legal structures and disregarded the delicate international bodies, increasing the already existing burden of fulfilling the basic norms of human rights. Undermine Social and Economic Rights: The MNCs dominant and significant position within the international forum increases its opposing competencies. MNCs can easily promote or undermine economic and social rights, which can in turn affect the international community, positively or negatively, depending on the local market of an economy. Though the State still holds much power over the laws and regulations on an international level, MNCs have a considerable impact over the decision making process of nation-states. As MNCs continue to grow economically and politically, the shift in power is gradually becoming visible. It is a must that the MNCs take into consideration the impact that they are leaving in developing countries. As MNCs continue to grow, their interference in the public domain also continues to increase. Their interference, leads to social and economic hazards for the public, i.e., the shareholders, employees, consumers and local populations. There is increasing support that calls for a more rigid and stricter regulation of the responsibilities of MNCs within their new assumed role. The world order is determined via deregulations of economics in nature and the lessening of government responsibilities when it comes to the public domain. This new reality has highlighted the growing need for regulation, as the influencing powers of various private organizations is increasing. This needs to be done in order to manage policies and reduce the gap. This extends to the customarily governmental realm of political and social policy, which are areas in which the Multinational Companies hold particular sway. Their contribution, be it positive or negative, will affect the economies, accordingly. Hence, a positive outlook on their part is a necessity if economic, cultural and social rights are to be promoted in this growing world of evils. Stifles Competition: The superiority of MNCs shines through their competitive nature as the stifle competition by getting subsidized inputs, lowering their costs and then competes with local manufacturers who cannot realistically match up to their prices. This results in a lot of them leaving the field, leaving the MNCs to monopolies the economy and then once in power, to jack up prices. Although FDI is supposed to foster growth, with the inclusion of MNCs it might lead to a loss of jobs as more businesses are put out of work. Although host countries require foreign investors to have a fix percent of local workers, this requirement is on the decline due to WTOs agreement on Trade Related measures on investment. Unmatched budgets: An offshoot of their influence on the government, the MNCs also have a huge advertising budget, which enables them to portray a much better image in the eyes of the local populace. With budgets that run in the millions, MNCs almost always succeed in gaining mass market shares of their products since the local companies cannot produce/hire production companies to do the same. This again alienates the local entrepreneurs and makes it harder for the majority of the population. Human Right abuses: The Multinational Corporation is an adaptable and established entity that profits from the principles of neo-liberal economics, as well as the predicament of the home and host state, the combination of which with restricted levels of liability and a decentralized decision-making hierarchy allows for abuses of human rights to take place internationally, by having doubt standards. Moreover, polices of MNCs such as the WTO, OECD, IMF and the World Bank, have enabled MNCs to gain a position of considerable influence on agendas of social and economic nature. In this never ending race to be the most economical, one major aspect that has not been given much due consideration is linked to the capacity that a state has to meet the terms and conditions of different forms of human rights obligations, i.e. economic, cultural and social rights. In order to meet this challenge, IMF and the World Bank have imposed economic reforms that allow production of goods and services to be worth exporting along with being deregulated and privatized. Foreign investment has become a must. Today, all states are inclined towards easing labor standards and modifying legal taxes to attract foreign investors. This inclination of states, in turn has led to a major destruction of human rights principles and the capability of states to self-sufficiently regulate their progress. Cooperation is required not only on an international level but also from non-state actors to safeguard rudimentary societal and financial privileges. As nations continue to fight over sovereig nty and the power shift continues to impact human rights negatively, the international legal structure is fast becoming inadequate to regulate and control the growth of influential non-state players, i.e. MNCs. Environmental impacts: Economic globalization has had quite a destructive impact on state regulation. People have been affected negatively and gradually the impact is increasing and becoming more obvious. The more competitive a nation, the lesser the regulations. Though this tactic is almost perfect in attracting multinational corporations, it is quite destructive in nature. In order to compete with such nations, other states are also forced to decrease their regulatory measures if they wish to get foreigners to invest in their country. No nation wishes to reduce its competitiveness or power. Foreign investors are now consuming the money that should have been legally invested in maintains the rights of the public socially, economically and culturally. Hence, MNCs are free from any legal obligations which may bind them and put a stop to the activities which are prone to destruct the communities that are subjected to the MNCs treatment. Moving Forward: With the growing economic power of corporations, an increasing number of domestic and international systems have started relinquishing control over their business over to their locally dominant MNCs. This leads to economic power having a say over political influence, which can be dangerous if left unchecked. The MNCs have complete power over national development, i.e. on matters such as trade, patent and monetary strategies. While regimes remain divided due to contradictory interests (effectiveness versus social modification), MNCs have a terse, vibrant and single-minded aim of creating as much profit as possible à ¢Ã¢â€š ¬Ã¢â‚¬Å" profit which allows them to control all parties a national and international level. The abuse faced by developing countries at the hands of MNCs has now become almost unbearable. The international financial structure that accentuates the free market way of thinking, denationalization and a decrease in the involvement of the public sector is thwarting many developing and underdeveloped countries from sanctioning a fair and reasonable progress, on the basis of human rights. MNCs have uncountable funds, are only inclined to maximize profit, use the least amount of employees possible, jump from nation to nation without much consideration , import employees rather than using the local labor, and refuse to acknowledge the social requirements of the state they operate in. All these activities directly impact the socio-economic rights of the public. As a consequence of these elements and several other international monetary problems such as inadequate technology transmission, absence of external investment and the brain drain, various developing countries need guidelines in order to react efficiently to the circumstances. [6] There is a growing mistrust and anger developing in the developing countries where the economic and environmental impacts have started to show. Conclusion: I was initially recruited while I was in business school back in the late sixties by the National Security Agency, the nations largest and least understood spy organization; but ultimately I worked for private corporations. John Perkins In his book, Confessions of an Economic Hitman (2004) [7] , John Perkins states how he was hired by such organizations to coerce leaders of developing countries to take high levels of un payable loans in favor of a quick short time gain. He states that by doing so, the country would eventually default or ask for more time, upon which these multinationals would sweep in and monopolize the markets. This practice, he emphasized was being carried out globally and under the guise of various fronts. The public must be made aware of such fraudulent activities and they should demand an end to such exploitations. A few sweeping observations can be made. With trade and investment barriers on the verge of being dissolute globally, the penetration of MNCs across the globe, especially in developing markets is bound to increase. This would lead them into further clawing their way into the inner workings of weak governments and increase their socio-politico-cultural influences. With numerous MNCs merging, they are increasing their powers and would be harder to resist. Foreign direct investments has its pros and cons. However they should not be ignored for fear of their adverse effects. Instead policies should be made to better utilize them as the host country sees fit. Foreign capital is one of the primary catalyst of encouraging development, but it should never been treated as an alternate to domestic investments, but rather a helping supplement. Developing countries need to develop more indigenous industries that are capable of competing on a global scale, in a market full of MNCs. This cannot be done if local industries are considered infant industries and given subsidies so they could play safe, rather they should be forced to compete with the best of them, which would enable them to increase their efficiency. Less developed countries should focus internally and improve basic areas, so as to better compete against mega organizations and prevent them from dominating the market. This can only be done if they are made to come to economies of scale and plan on operating on a global scale, rather within the confines of a few local markets. [8] Multinational Companies are a reality and they are here to stay for the forseeable future. It is time for countries which have been exploited to start making changes and amend their ways for the better and the sooner the better.

Explain the reasons for the fall of the Romanovs

Explain the reasons for the fall of the Romanovs The cause of the fall of the Romanov dynasty in 1917 was a result of long-term causes including Tsar Alexander's inability to satisfy his people and Tsar Nicholas II's inability to rule to throne all together. The Bloody Sunday event, the war with Germany, Rasputin and Tsars bad decisions was also some of the causes which led the Romanovs to fall. It all began in 1894 when Alexander Ill, died leaving his son Nicholas II to become the tsar of Russia at the age of 26. Nicholas was married toAlexander the princess of Germany which they had 5 children, 4 girls and a boy. The only son Alexis was born with hemophilia. Russia was a huge country with millions of extremely poor farming peasants. These peasants lived horrible lives, many were starting to wonder why the tsar had all the wealth and they had none. In 1905 Russian Revolution was sparked off by a peaceful protest held on January 22nd. Thousands of demonstrators such as students, fact ory workers, revolutionaries, doctors and teachers marched through the cold and snow covered streets of StPetersburg to Winter Palace to protest about their lifestyle, led by a Russian Orthodox priest, Father Gapon. When the peaceful protestors arrived they were confronted by troops, which they fired on the crowd. After the firing had finished several hundred protestors lay dead, this event was called ‘Bloody Sunday. In 1907 Nicholas and Alexander had asked a priest called Gregory yefimovich also known as ‘Rasputin', to help pray and care for their son Alexis when he became sick. He was the representation of everything that was wrong in the Russian autocracy, corrupt, and rrational.He was also considered an alcoholic, dirty charlatan who held control over millions of people's lives, even though Russia had a fairly capable bureaucracy and thousands of well-educated, highly cultured nobles who were interested in local government and the rule of law. In 1914 Russia had ente red in WWI, repairing the division between the tsar and his people. Russia was not welled prepared, they still wasn't industrialized. They were fighting with swords, cannons, and horses against machine guns.It was very difficult to get medicine, ammunition, and even food to the ront of the armies because railways were incomplete and Just stopped before reaching their supposed destination, the result caused many soldiers to starve. During this war Russia had lost over one million people as casualties and POW's. Militarily, it wasn't going too bad until in 191 5 Nicholas had decided to take control of the army himself. It was Rasputin's and Alexandra's advice that caused Nicholas to take personal control of the Russian Army, which wasn't a good idea as he had no military strategic training.He travelled to the army headquarters in Mogilev, 500km way from Petrograd which led to Tsar Wife Alexander in charge while he was away at war. This caused stir between tsar and his people due to ts ar not using the money to help the poor but spending all their money on war. The Germans ended up overthrowing the Russians that people started to think Nikolas and Alexandra were German spies who were sabotaging the war effort. In conclusion the fall of where all peasants marched peacefully but concluded with many deaths, Rasputin and how he convinced tsar to do things, and the tsar bad decision associated also with WW1 against Germany.

Choosing Samples of a How to Essay Is Simple

Choosing Samples of a How to Essay Is Simple Getting the Best Samples of a How to Essay Creative essays should have a topic. Stephen's essay is quite effective. Your extended essay introduction must be catchy. Writing a great introduction and conclusion is just one of the greatest touchups an essay can get to turn into noticeable. If you get an obvious essay, readers will understand easily what you wish to tell. The readers wish to read an essay that's totally free from any mistakes so it will be simple to comprehend. You've got a guide and get ideas about what to do with your essay. Learn more about the way the essay is scored. It gives you an opportunity to show how effectively you can read and comprehend a passage and write an essay analyzing the passage. A superb essay should have essential points. Critical essays enable you to use your critical thinking abilities. What the In-Crowd Won't Tell You About Samples of a How to Essay To put it simply, an academic essay may be an evidence of the depth of your research procedures and the rest of the activities which you have executed so you can support the content of your written output. Moreover, our English-speaking writers make sure every order has original content and an appropriate structure. Based on the subject of education where you are in, you want to be certain your readers can observe patterns of evidence presented so that they can clearly see how you had the ability to generate and produce insights. The range of scientists and technologists who've been motivated by science fiction before are legio n. The Secret to Samples of a How to Essay Essay writing is usually practiced is schools. As you are interested in getting the essay to communicate the ideal information about you, you have to do thorough preparation for the sample college admission essays to accomplish its purposes. It isn't difficult to write GMAT essay for those who have a guide and you've completed a good researched. The SSAT essay is the initial portion of the SSAT exam. Bridget's essay is extremely strong, but there continue to be a couple little things that could be made better. It's possible to even locate a synopsis of the book or movie if this helps you. Following that, you can proceed to compose a brief background information regarding the movie or book. You might also want to suggest additional research or comment on things that it wasn't possible that you discuss in the paper. The most significant thing is that you justify all you say in your essay. Unique things to various folks, since the situation demanded. Every thought should be relevant and concise. When a kid is born, for example, its mind is black and empty. The essay proposal sample is about the practice of proposing the demand for an essay. The wording has to be clear and concise. It is possible to even suggest the reader to additional research on your topic. Make sure that it's labelled and include a concise description of the way that it works. For a beginning, the typical application essay topics need you to use language that's absolutely free from language flaws and grammatical mistakes. Each paragraph needs to be more specific than the last, introducing new parts of information, examples, and in depth evidence. Make certain that you own a thesis statement and topic sentences for each paragraph. So far as essay structure goes, a 4 or 5 paragraph essay based on the number of points you may wish to argue is an excellent start. Ideally, it must be written at the previous sentence of your very first paragraph (introduction). If you wish to use WordPress you need to utilize Linux hosting. Turn on your own personal computer, check the online connectivity, and visit a search browser type in topics for argumentative essay and you'll observe hundreds. If you're just prone to create a typical site then either Linux or Home home windows will likely be fine. Even a fast search at Google Scholar results in as many great sources like I need.

Water For Elephants, By Sara Gruen - 1376 Words

Throughout time, distinguished authors have succeeded in the goal of portraying the human journey. There has been an innumerable amount of literature published over the years; however what separates the extraordinary books from the appalling books, is the author’s ability to visually and emotionally move their readers. In order to establish a connection to the audience, an author must understand human experience. In Water for Elephants by Sara Gruen, two narratives are used, one of an older Jacob, and one of a younger Jacob. This choice is made by the author to help the reader fully comprehend the circle of life. Everyone succumbs to age sooner or later, and while many books conclude with the narrator finding contentment at an early age, this is not the case in reality. In the real world, most struggle to achieve fulfillment, by creating an elderly Jacob, in this case it does not necessarily mean that a live has been fulfilled. The old aged are sometimes just as clueless as th e young. Sara Gruen discloses that the old are not very different from the young; in many cases the old are still playing the game against the formidable opponent of life. We are introduced to an eager and naà ¯ve Jacob in the initial stages of the novel. However, Jacob is introduced to the cruelties of the world all too suddenly, when the death of his parents is abruptly thrust upon him. It states, â€Å"I snap out of my stupor. There are people on that train. It matters not a whit where it’s going becauseShow MoreRelatedLove with Courage in Sara Gruen ´s Water for Elephants Essay1392 Words   |  6 PagesLove is a very powerful emotion which is achieved by overcoming many hurdles and acting with courage. This bravery can be shown towards anything and anyone, including humans and animals. In Sara Gruen’s Water For Elephants, courage is a key aspect for characters that portray their love for other individuals and the animals. The characters, Jacob and Marlena love each other bravely, despite knowing the consequences for their actions. Not only does Marlena love Jacob, she also portrays affection forRead MoreWater for Elephants1072 Wo rds   |  5 Pages In Water for Elephants, the story is told through Jacob Jankowski at two different parts in his life: twenty-three year old Jacob who is out there exploring the world and, ninety-three year old Jacob who feels like he is wasting away his life in a nursing home. Water for Elephants is Gruen’s third book, it became one of the New York Times best sellers, it’s also available in forty-four different languages and it’s now a motion picture (Sara Gruen). Throughout the novel the reader is broughtRead MoreTheme Of Greed In Water For Elephants852 Words   |  4 Pagespredominant role throughout Water For Elephants. Many characters seemed to have embodied a very greedy nature during this time. 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As Gruen writes, August feels the need to release this anger, and, â€Å"[†¦] distraught listeners could still make out the hollow thud of bull hook hitting flash, again and again and again† (Gruen, 223). August compulsivel y feels the need to take outRead MorePersonal Project4460 Words   |  18 PagesBooks for Young Readers, 2003. * Picoult, Jodi. My Sister’s Keeper. Washington Square Press, 2004. * Boyne, John. The Boy In The Striped Pyjamas. Atria Books, 2006. * Sparks, Nicholas, Dear John. Warner Books, 2006. * Gruen, Sara. Water For Elephants. Algonquin Books of Chapel Hill, 2006. * Picoult, Jodi. The Pact. Avon, 1998. * Paterson. Katherine. Bridge To Terabithia. Harper Collins Publishers, 1977. * Heller, Joseph. Catch-22. Simon amp; Schuster, 1961. *