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INTERNATIONAL RELATIONS
International Relations: Globalization and Multinational Corporations
Globalization could be defined as companies global expansion to reach global consumers with their products and services (Kyove et al., 2021). This has enabled the spread of technology, communication, and employees from one geographical location to another. It was through this method that international trade became progressive. It gave rise to joint ventures, mergers, acquisitions, etc.
Multinational corporations (MNCs) have impacted how globalization has expedited over time. Trade, foreign direct investment (FDI), and other relevant cross-border communication channels have fueled the way business had been operating hardly a decade ago. The growth of a countrys economy where they operate have observed boosting as the transfer of skills and technology has been remarkable.
Two categories of international trade have been seen when MNCs vigorously played their part in globalization: transnational trade and financial trade, which mainly came from technological change (Kenya, 2020). The trading system dramatically changed business operations and amplified the banking and finances of host countries. The governments had to change some of their policies to accommodate the new entrants or create opportunities for their economies to flourish. The markets intensive and extensive labor makes the economic integration smooth.
Evidence has suggested that this could be the case due to two features of the developing countries market: small size and easy obtainability of inexpensive labor (Ferdausy &...…observed when the management tries hard to impose their demands while the workers are not ready to accept them.
Creation of unwanted pollution and being less of corporate socially responsible sometimes land them in hot waters. MNCs ethics and morals are questioned because they do not seem to deliver to society what they initially promised. Since the developing countries are weaker and looking forward to growing, they might be ready to compromise on some factors that MNCs take advantage of. It is when MNCs try to enforce their culture on developing countries employees and complicate the dimensions of cultural diversity. The dilution of the local richness is somewhat felt by the host countrys employees,…
References
Ferdausy, S. & Rahman, M.S. (2009). Impact of multinational corporations on developing countries. The Chittagong University Journal of Business Administration, 24, 111-137.
Kenya, G. (2020). The role of multinational corporations (MNCs) in globalization. Research Gate. https://www.researchgate.net/publication/342437901_The_Role_of_Multinational_Corporations_MNCs_in_GlobalizationKyove, J., Streltsova, K., Odibo, U. & Cirella, G.T. (2021). Globalization impact on multinational enterprises. World, 2(2), 216-230. https://doi.org/10.3390/world2020014
Tan, D. & Mahoney, J.T. (2006). Why a multinational firm chooses expatriates: Integrating resource-based, agency and transaction costs perspectives. Journal of Management Studies, 43(3), 457-484.
Wijesinghe, P. (2018). Human rights violations by multinational corporations: Nestle as the culprit. SSRN. http://dx.doi.org/10.2139/ssrn.3136321
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