What Is The Economic Implication Of Multinationals Before The Industrial Revolution?
Most industries, before the Industrial Revolution, used hand production. In the 18th century, the Industrial Revolution marked a major change in the production processes. The changes that took place included a move from hand production to using machines, novel chemical manufacturing, improved processes in the production of iron, better efficiency in using water power, increased steam power utilization, and tools were developed that could use machines (UNIDO, 1983). It also saw a change from using wood and bio-fuels to coal as the main source of fuel. The era saw increased movement from rural areas, where farming was the main economic activity, to working in the cities. This included working of women and children in factories (Bradford, 1987).
…show more content…
New Jersey, in 1889, enacted the pioneering legislation that would allow a corporation to acquire and possess equity in another. This was the genesis of an era where states such as New Jersey, Delaware, and New York among others, struggled to appeal to major corporations by eliminating limitations like on corporate size as well as mergers (Roach, 2007).
Multinationals developed as time went by. The economic implication of multinationals has been evident in various ways. There has been an increase in their economic scale, mainly when gauged as per their productive assets’ ownership. Although the scope and economies of scale have led to the growth of the multinationals, the main element in the modern multinationals has been their transnational mobility going after opportunities for low-cost production (Dicken, …show more content…
However, they failed to do so means that there is need for more efforts to achieve this goal. Ensuring that the MNCs’ objectives align to the general societal goals is challenging, especially with national regulations or voluntary reforms (Walker & Salt, 2012). The multinationals’ transnational mobility means that action should be taken at the international level. The challenge in achieving this results from the fact that the MNCs exert significant influence over international agreements. Thus, meaningful change will only be possible if all the stakeholders have their interests represented in the
New Jersey, in 1889, enacted the pioneering legislation that would allow a corporation to acquire and possess equity in another. This was the genesis of an era where states such as New Jersey, Delaware, and New York among others, struggled to appeal to major corporations by eliminating limitations like on corporate size as well as mergers (Roach, 2007).
Multinationals developed as time went by. The economic implication of multinationals has been evident in various ways. There has been an increase in their economic scale, mainly when gauged as per their productive assets’ ownership. Although the scope and economies of scale have led to the growth of the multinationals, the main element in the modern multinationals has been their transnational mobility going after opportunities for low-cost production (Dicken, …show more content…
However, they failed to do so means that there is need for more efforts to achieve this goal. Ensuring that the MNCs’ objectives align to the general societal goals is challenging, especially with national regulations or voluntary reforms (Walker & Salt, 2012). The multinationals’ transnational mobility means that action should be taken at the international level. The challenge in achieving this results from the fact that the MNCs exert significant influence over international agreements. Thus, meaningful change will only be possible if all the stakeholders have their interests represented in the