Rate this paper
  • Currently rating
  • 1
  • 2
  • 3
  • 4
  • 5
4.00 / 3
Paper Topic:

Do multinational corporations exploit the developing world?

Do Multinational Corporations exploit the Developing World

International trade has been in existence since time immemorial . The only clear difference between `globalization ' in those days and now is the presence of large corporations nowadays operating in several countries . With blurring boundaries between nations , leaders of countries from the lower half of world economies are divided on their views regarding the ultimate value of multinational companies harnessing their human and environmental resources , while those from above continue to trumpet the economic benefits the expansion of production base of their corporations provide to

host countries

Modern day globalization has been imminent since the early days of industrial revolution . Massive growth of production of goods eventually outpace the demands in their localities , and thus companies needed wider markets and explored nationwide and in no time overseas . But save for issues on nationalism , the preservation of culture of individual countries , and complaints from local companies of unfair market competition , this aspect of globalization - the importation of goods by less developed countries - hadn 't have encountered fierce criticism or opposition as much as the other aspect had - the expansion of production base of corporations to other nations

As soon as corporations started exploring wider markets and spurred demand , the idea of conducting their production operations from other countries has been looming . Aside from more production capacity , the prospect of operating in a country with less stringent environmental laws and lower wage standards is just irresistible for multinational companies

Governments of host nations , on their part , would almost always want to welcome any multinational companies interested in establishing production operations in their country . With the economic benefits they would provide through taxes and employment , the skills they would impart to its populace , and the transfer of technology they will bring in with them , multinational companies will certainly help improve the image of governments to their citizens . If not for the opposition of some sectors of society - citing possible exploitation of the environment and human resources - governments , especially of least developed countries , would automatically allow any multinational company interested to operate

Globalization has given multinational corporations power beyond nation-states , and has considerably weakened a country 's control over corporate practices and inflows and outflows of capital , setting of regulations , balance of trade and exchange rates , or local economic policies . The domination of these large corporations has also limited the ability of individual workers to demand higher wages and better working environment , for governments themselves fear that they may transfer to other more `conducive ' countries . In addition , some multinational companies have budgets that far exceed those of developing countries they can cultivate a deep influence in international affairs and domestic economies

So , with all these contrasting views on multinational corporations what 's the real deal with them ? What are the reasons large companies outsource labor from other countries ? What are the effects of the presence of foreign companies in host nations ? Do they exploit the developing countries ? Do host nations gain benefits

Multinationals , becoming common since around 1890...

Not the Essay You're looking for? Get a custom essay (only for $12.99)