Allowing or prohibit multi-national corporations.
Enviado por Jose Carlos Cano Arroyo • 28 de Septiembre de 2016 • Ensayo • 396 Palabras (2 Páginas) • 829 Visitas
Allowing or prohibit multi-national corporations.
Name: Jose Carlos Cano Arroyo cod: 200054569. level 7.
The multinational corporation is a business organization whose activities are located in
more than two countries and is the organizational form that defines foreign direct
investment(2001,p.2). The history of the multinational corporation is tied closely to the
origins of trade in and between cultural communities, and these communities remain
important in many sectors in the modern economy. Nowadays, countries seriously
discussed before accepting a multinational for the consequences that these could bring.
Therefore will treat to compare the risks of allowing multi-national corporations to extract
resources vs. The risks to the economy if multi-national corporations are banned.
Allow multinationals in a country it implies that it could serve the valuable function of
importing new practices(1992,8). They provide new technologies that have considerable
impact on national growth indices. Also the multinational corporation employs large
numbers of employees that it increases the quality of life of many families. However its
practices are likely to conflict with existing institutions and cultural norms. In addition
some knowledge are embedded in organizations and cannot be transferred. Therefore,
accept multinational affect national growth.
Governments that prohibit foreign companies seek to maintain political and economic
autonomy. The state is obligated to create laws that promote and support the development
of local companies. It ensures that profits remain in the country and these are invested in
the same . The absence of multinationals there will not be unequal competition between
local companies that also many people would be encouraged to create new businesses.
Though although local companies are constrained by the lack of new technologies and
progress of the country would be slower. Therefore, the final is the national growth.
Allowing or prohibit multi-national corporations both options are used by many countries
because both impact the national growth. Since multinational corporations are often large,
they pose unusual challenges to national and regional governments who seek to maintain
political autonomy and yet are often anxious to seek the investment, technology, and
managerial skills of foreign firms. The best option will be fit with the policies and
conditions of the country. Therefore must be chosen that will help the growth of the country
and welfare of citizens.
Reference:
Multinational Corporations (2001), International Encyclopedia of the Social & Behavioral Sciences, ISBN: 0-08-043076-7, url: https://www0.gsb.columbia.edu/faculty/bkogut/files/Chapter_in_smelser-Baltes_2001.pdf
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