Multi national corporations
THE CATHOLIC UNIVERSITY OF EASTERN AFRICA
KISUMU CAMPUS FACULTY OF ARTS AND SOCIAL SCIENCES DEPARTMENT OF SOCIAL SCIENCES UNIT NAME: POLICTICS OF MULTINATIONAL CORPORATIONS
UNIT CODE: SPO 445
TOPIC: TO VALIDATE THE NORTION THAT MULTINATIONAL CORPORATIONS HAVE INFLUENCED THE CONDUCT AND BEHAVIOUR OF STATES An Assignment submitted to the department of Arts and social sciences in partial fulfillment of the requirement for the award of bachelor’s degree PRESENTED BY: SIMON OMONDI
BASS/KC/PT/132/11/12
PRESENTED TO: MR. R. S. NG’AYO NOVEMBER, 2013
Table of Contents
Introduction 1
The nature of Multinational corporations 2
The relationship between the nature of MNCs and State behavior 4
Conclusion 7
References 8
Introduction
According to Zaidi (2011) MNCs have contributed significantly to the development of world economy at large. They have also served as an engine of growth in many host countries MNCs is based on the maxim: the bigger the better. Their huge size and immense resources confer them with the ability to take world markets by storm. Not only that, their tremendous economic power places them in a position of supremacy whereby they can command political institutions and shape cultures. The conquest by MNCs has evoked a great deal of controversy. Opinions are divided on whether the conquest is beneficial for the vast majority of the world’s population living in the less developed countries (LDCs). Whether it has ushered in an era of prosperity for the world at large, or whether it has simply marked the opening of another era of colonialism for the Third World (Zaidi, 2011).
One of the most important issues states face is the growing power of the MNCs at the expense of state sovereignty. MNCs are more bane than a boon to state economies, recent evidence shows that foreign direct investment from MNCs can help promote and sustain development in many countries. Hence states
KISUMU CAMPUS FACULTY OF ARTS AND SOCIAL SCIENCES DEPARTMENT OF SOCIAL SCIENCES UNIT NAME: POLICTICS OF MULTINATIONAL CORPORATIONS
UNIT CODE: SPO 445
TOPIC: TO VALIDATE THE NORTION THAT MULTINATIONAL CORPORATIONS HAVE INFLUENCED THE CONDUCT AND BEHAVIOUR OF STATES An Assignment submitted to the department of Arts and social sciences in partial fulfillment of the requirement for the award of bachelor’s degree PRESENTED BY: SIMON OMONDI
BASS/KC/PT/132/11/12
PRESENTED TO: MR. R. S. NG’AYO NOVEMBER, 2013
Table of Contents
Introduction 1
The nature of Multinational corporations 2
The relationship between the nature of MNCs and State behavior 4
Conclusion 7
References 8
Introduction
According to Zaidi (2011) MNCs have contributed significantly to the development of world economy at large. They have also served as an engine of growth in many host countries MNCs is based on the maxim: the bigger the better. Their huge size and immense resources confer them with the ability to take world markets by storm. Not only that, their tremendous economic power places them in a position of supremacy whereby they can command political institutions and shape cultures. The conquest by MNCs has evoked a great deal of controversy. Opinions are divided on whether the conquest is beneficial for the vast majority of the world’s population living in the less developed countries (LDCs). Whether it has ushered in an era of prosperity for the world at large, or whether it has simply marked the opening of another era of colonialism for the Third World (Zaidi, 2011).
One of the most important issues states face is the growing power of the MNCs at the expense of state sovereignty. MNCs are more bane than a boon to state economies, recent evidence shows that foreign direct investment from MNCs can help promote and sustain development in many countries. Hence states
References: Alden, C., & Davies, M. (2006). Chinese Multinational Corporations in Africa. Chinese National Offshore Oil Corporation. Benett, J. (2002). Multinational Corporations, Social Responsibility and Conflict. Journal of International Affairs. Vol. 55, No.2 Bhan, M Brewer, L. T. (1992). An Issue –Area Approach to the Analysis of MNE – Government Relations. Journal of International Business Studies, Vol. 23, No.2, Pp 295 – 309. Buchanan, P. (1995). An American Economy for Americans. Wall street journal, Vol. 9. Christos, P., & Sugden, R. (2000). The Nature of the Transnational Firm. Routledge, P 72. Davis, B. P. (2010). The Role of Governance of Multinational Companies in Processes of Post Conflict Reconstruction. Birkbeck: University of London. Kapfer, S. (2006). Multinational Corporations and the Erosion of State Sovereignity. IIinois: Illinois State University. Kogut, B., & Kulatilaka, N. (1994). Operating Flexibility Global Manufacturing and the Option Value of a Multinational Network. Management science, Vol. 40, No. 1, Pp 123 – 141. Mallaby, S. (2004). The World’s Banker: A Story of Failed States, Financial crisi, and the Wealth and Poverty of Nations. New York: Penguin Press. Moran, H. T. (2006). Multinational Corporation and Dependency: A Dialogue for Dependentistas and non-dependentistas. International Organization, Vol. 32, Issue 1, Pp 79 -100. Patey, A. L. (2006). Understanding Multinational Corporations in War ton Societies: Sudan in Focus. Danish Institute of InstInternational Studies. Copenhagen. Perlmutter, H.V. (1992). The Multinational: Firm and the Future. Annals of the American Academy of Political and Social Science, Vol. 403, Pp 139 - 152 Quinlivan, G Root, R. F. (1990). The Nature and Scope of Multinational Enterprises. International Trade and Investment. 6th ed. Cincinnati, OH: South- western Publishing Co. Pp 580 – 608. Stapford, J. (1999). Multinational Corporations. Foreign Policy, Vol. 113, Pp 12 -24 Walters, R Zaidi, H. H. (2011). The Role of Multinational Corporations in Developing Countries. Weekly Review: Business and Finance Review, Vol. 26.