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The Role of Multinationals in Fostering International Relations and Globalization

Last reviewed: October 25, 2017 ~8 min read

Google and the Government of China
Multinational corporations are organizations with operations and business activities conducted in more than one country. The discipline of international relation focuses on various aspects related to political science such as global poverty, globalization, and the political environment. Google exemplifies a multinational corporation and a major player spearheading the role in the globalization on the world stage (Geppert & Dörrenbächer, 2017). The company has been influential in shaping production processes, global trade, and other financial transactions because of its considerable autonomy. The following study shows that the spread of new communication technologies will shape today's international relations with MNCs as the major drivers.
In the contemporary society, we observe that international relations have managed to give multinational corporations the chance to seek an understanding concerning issues such as the nature and power exercise process in the global system (Devetak, Burke & George, 2011). It is evident that national governments are now sharing their powers with business communities, nongovernmental organizations, and the international organizations. Through such sharing, China has understood the changing character of its state and other non-state actors when participating in international decision-making processes (Bianchi, 2009). Therefore, states have seen the importance of engaging with multinational corporations because they create furtherance of goals in foreign policy.
Many corporations and advocacy groups have seen this foreign policy concept to be important in promoting a country's democracy, provide humanitarian relief for its population, and fight the rising international acts of terrorism. Therefore, nations have managed to propel their economic liberalization, wage war, and cure diseases. The article is relevant when looking at the important role played by multinational corporations in today's international relations because they are instruments of improving global relations through creating commercial ties (Geppert & Dörrenbächer, 2017).
The aspect of globalization has been mentioned and we see it improving the communication, transportation and technological factors of any given country. Moreover, economic agreement pacts have been formed, which has made the world to become more of a village. Therefore, people can trade, meet, interact and further affect each other (Bianchi, 2009). This concept of globalization phenomenon has seen the rules of the game change even for the Chinese government's economy, politics and their international relations. It is through globalization where we see social disintegration and political stimulation at its peak because MNCs like Google have had more say on China's national and international economic state issues. Globalization has been seen in many countries, and this has managed to show how important such processes come to play in nation building. Many actors have managed to reap the fruits of globalization through activities like improving their channels of communication. Others have also resorted to being innovative in their different fields that have seen many improve and gain knowledge through sharing information electronically.
Furthermore, critics have raised concern that MNCs have managed to replace nation-states as primary actors in international politics successfully. Moreover, the MNCs have influenced policies found in their home governments. Through such acts, they are also able to influence the policies of their host governments. For the article, this was made possible by the presence of one Dr. Kai-fu Lee who was helping Google during the negotiations process (Grogan & Brett, 2006). By having Dr. Lee on their side, the company enhanced the negotiation process because the negotiator was familiar with all the rules of Chinese negotiations. With such people on is board, Google is more than willing to follow China's rules on trade policy. Therefore, when fostering strong trade bonds and relations, Google will first look at what the Chinese government is offering.
When we look at the Chinese government, we are well aware of the stringent communication regulations put forward by the government. Nonetheless, with advancement in the information technology sector, information is slowly chipping away at power states like China and is now shaping and creating the public opinion (D'Anieri, 2011). In today's world, we notice that more than 100 million Chinese people are surfing the Web and its bloggers are more than four million. During the SARS epidemic, the Chinese citizens used the Internet to bring the issue forward even though they faced serious objections from government officials (Geppert & Dörrenbächer, 2017). The advancement and penetration of technology has seen cross-border communication decrease its costs. Such cost reduction has seen many states embrace Google into their country because they are well aware of the advantages that come with using their services (D'Anieri, 2011).
Multinational corporations have had a major influence on host nation-states, and their growth has made the nation to no longer be the only actors in international affairs of various nations (Geppert & Dörrenbächer, 2017). In such cases, the issue of concern being raised is the fact that MNCs are seen to be growing in international affairs and their state relations, Chinese-U.S. relations. With such issues emerging from China, Google has managed to show how multinational corporations can increase their influence in the market economy of China. By having such influence, China has gained because most of the ‘brain-drain' issues have been curtailed, which means that job opportunities have been created for the people of China (Grogan & Brett, 2006). The creation of job opportunities to the locals of China has seen the country's economy stabilize.
The other importance ascribed to MNC is its relevance to development and labor standards on issues related to international relations. For example, concerning legitimacy, MNCs have raised deeper and more fundamental aspects. Both multinational corporations and international business have grown big in scale and are now exercising a major influence on economic, political, and social developments of a given country throughout the world (Grogan & Brett, 2006). Having new economic relations put in place, new tools for trade plus the new interdependence between states and multinationals, have managed to create new circumstances for a country like China (Geppert & Dörrenbächer, 2017). The rise of Google gave the people economic and political power when it came to manipulating the actions of their state government. Such acts of power-sharing are a threat to nation-states, and this has made interdependence to become valid not only between states but has managed to include states and other private actors (D'Anieri, 2011). All these people need to cooperate if they need to protect their interests fully and multinational corporations have attained this.
Google is a multinational corporation that has offices in many countries around the globe, and thus, it understands fully well the importance of promoting successful trade policies between nations. With the stipulated code of conduct well, it shows its commitment to having a business arrangement with countries like China. Furthermore, such MNCs have managed to enhance people's styles of living by encouraging them to travel to other countries and interact with people of different cultures and backgrounds. Having such exchange of knowledge and ideas is good because it allows nations to pool their resources together. As such, MNCs ensure that nations cooperate with each other and this has helped many countries especially when faced with global issues like the environment, climate, and terrorism (Grogan & Brett, 2006). Through such exchange, cultural exchanges are promoted, and this leaves the people of China more aware of what other people around the globe are facing regarding hardships. Hence, this makes them appreciate more their country and will strive hard to ensure that peace reigns in their continent.
In summary, we can say that MNCs are seen as engines of global economic development, the transfer of technology and deepening of globalization processes. Google has managed to grow within its domestic corporate framework and has set up new subsidiaries in the Chinese economy. The importance of multinational corporations concerning international relations includes giving support to the global business infrastructure of the country. Through such interaction, the transnational community has managed to connect many businesspeople, and this has seen the economy of the country improve. Furthermore, multinational corporations are important in international relations because they provide power-sharing options, which have enabled many people to take part in the decision-making process that looks after the interests of its populous. The process of globalization has also been fostered in China, and this has resulted in having an improved communication, transport, and technology system. Such improvements have made it easy for Chinese people to interact with other people around the globe and this has seen many of them learn more about the different cultures in the world. MNCs have also contributed to the development of host countries due to the operations taking place that has seen many people are employed.


References
Bianchi, A. (2009). Non-state actors and international law. Burlington, VT: Ashgate.
D'Anieri, P. (2011). International politics: Power and purpose in global affairs (Brief ed.). Stamford, United States of America: Wadsworth/Cengage Learning.
Devetak, R., Burke, A., & George, J. (2011). An introduction to international relations (2nd ed.). New York, NY: Cambridge University Press.
Geppert, M. & Dörrenbächer C. (2017). Multinational Corporations and Organization Theory: Post Millennium Perspectives. New York, NY: Emerald Group Publishing
Grogan, C., & Brett, J. (2006). Google and the government of China: A case study in cross-cultural negotiations. Kellogg School of Management. From https://services.hbsp.harvard.edu/services/proxy/content/70845382/70845384/889cf0114c5677fc6f1e901a1c509136

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PaperDue. (2017). The Role of Multinationals in Fostering International Relations and Globalization. PaperDue. https://www.paperdue.com/essay/role-of-multinationals-international-relations-2166341

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