Globalization and Mncs
INTRODUCTION
The spread of globalization around the world has been fed by many factors. Though the political decisions of economic globalization get all the headlines, it is however, institutions like Multinational corporations that power it along. The power and influence of multinational corporations in the world is one that cannot be doubted. In fact, the new game for world power is no longer Geo- political but Geo-economic. Its main actors are no longer the former world aristocracy of great powers but a new aristocracy in the name of multinational corporations.
In this essay, we provide a critical analysis of the role of Multinational Corporations (MNCs) in the spread of globalization. It is structured as follows:- we begin by defining key terms and concepts that will be used in the essay before we proceed to discussing a brief historical background of MNCs. We will then discuss some of their characteristics for us to understand and appreciate their role. By looking at their strengths, weaknesses, including the opportunities they create including factors that threaten their existence, we will analyze their role in the spread of globalization. It should be noted from the onset that, though there are different dimensions of globalization, this essay, is however, written from the economic point of view. Furthermore, the essay is written from a developing country’s point of view.
DEFINITIONS OF TERMS/CONCEPTS
MULTINATIONAL CORPORATIONS (MNCs)
MNCs, sometimes called transnational corporations or international corporations, are businesses that produce or distribute products or services in one or more foreign countries by establishing a branch or affiliate there. Todaro and Smith (2003), define them as corporations with headquarters in one country but with branch offices in a wide range of both developed and developing countries.
ECONOMIC GLOBALIZATION
It is the movement towards one solid economic system. It means the movement of many and different economic sub
The spread of globalization around the world has been fed by many factors. Though the political decisions of economic globalization get all the headlines, it is however, institutions like Multinational corporations that power it along. The power and influence of multinational corporations in the world is one that cannot be doubted. In fact, the new game for world power is no longer Geo- political but Geo-economic. Its main actors are no longer the former world aristocracy of great powers but a new aristocracy in the name of multinational corporations.
In this essay, we provide a critical analysis of the role of Multinational Corporations (MNCs) in the spread of globalization. It is structured as follows:- we begin by defining key terms and concepts that will be used in the essay before we proceed to discussing a brief historical background of MNCs. We will then discuss some of their characteristics for us to understand and appreciate their role. By looking at their strengths, weaknesses, including the opportunities they create including factors that threaten their existence, we will analyze their role in the spread of globalization. It should be noted from the onset that, though there are different dimensions of globalization, this essay, is however, written from the economic point of view. Furthermore, the essay is written from a developing country’s point of view.
DEFINITIONS OF TERMS/CONCEPTS
MULTINATIONAL CORPORATIONS (MNCs)
MNCs, sometimes called transnational corporations or international corporations, are businesses that produce or distribute products or services in one or more foreign countries by establishing a branch or affiliate there. Todaro and Smith (2003), define them as corporations with headquarters in one country but with branch offices in a wide range of both developed and developing countries.
ECONOMIC GLOBALIZATION
It is the movement towards one solid economic system. It means the movement of many and different economic sub