Advocates of multinationals say they create high-paying jobs and technologically advanced goods in countries that otherwise would not have access to such opportunities or goods. On the other hand, critics say multinationals have undue political influence over governments, exploit developing nations and create job losses in their own home countries.
A multinational corporation MNC is usually a large corporation incorporated in one country which produces or sells goods or services in various countries. Coined at least as early as in Business Weekthe conception was theoretically clarified in This intersection is known as logistics managementand it describes the importance of rapidly increasing global mobility of resources.
In a long history of analysis of multinational corporations we are some quarter century into an era of stateless corporations - corporations which meet the realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries.
Theoretical background[ edit ] The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society.
According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in free market system where there is little government interference.
As a result, international wealth is maximized with free exchange of goods and services. They have taken the integration of national economies beyond trade and money to the internationalization of production.
For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies.
Economic theories of the multinational corporation include internalization theory and the eclectic paradigm. The latter is also known as the OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses.
This has a history of self-conscious cultural management going back at least to the s. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing".
However, the projected outcome of this was not the assimilation of international firms into national cultures, but the creation of a "world customer". It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself.
The Company also had important operations elsewhere. A transnational corporation differs from a traditional multinational corporation in that it does not identify itself with one national home.
While traditional multinational corporations are national companies with foreign subsidiaries,  transnational corporations spread out their operations in many countries to sustain high levels of local responsiveness.
Charter company and Neocolonialism The history of multinational corporations is closely intertwined with the history of colonialismthe first multinational corporations being founded to undertake colonial expeditions at the behest of their European monarchical patrons.
During the 19th century, formal corporate rule over colonial holdings largely gave way to state-controlled colonies,   however corporate control over colonial economic affairs persisted in a majority of colonies.
However the economic impact of corporate colonial exploitation has proved to be lasting and far reaching,  with some commentators asserting that this impact is among the chief causes of contemporary global income inequality.
Some of these critics argue that the operations of multinational corporations in the developing world take place within the broader context of neocolonialism.
Anti-globalization movement and Anti-corporate activism Anti-corporate advocates criticize multinational corporations for being without a basis in a national ethosbeing ultimately without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards.
In other words, increased mobility of multinational corporations benefit capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequalityunemploymentand wage stagnation.No Companies can be like this.
Why are you pessimistic about MNC Companies?
They are one way biggest employers in India and helped redesign the work culture and systems in India during the last quarter of a century. Eleven companies, six U.S.-based companies in Japan and five Japan-based companies in the United States and England as listed in Table , were selected for extensive case presentations from their top executives.
A research contract was also granted to Tama Institute of Management and Information Sciences to supplement the hearings. Feb 21, · Our topic is multinational companies:are the devils in disguise? First of all I agree with many of your arguments. It has its positives as well as negatives.
Positives: 1. It provides employment to many youths.
2. They doesn't consider recommendations and reservation for job applications. 3. They increases the rate of economic growth of our country. grupobittia.com: Anonymous.
These companies are not devil's for the talented persons because they very well know the value of the MNC company. So don't think about that INDIA'S MONEY ARE GOING OUTSIDE THE COUNTRY.
Just think positive and look and think about your future life of your children as you got soon. What is a 'Multinational Corporation - MNC' Such companies have offices and/or factories in different countries and usually have a centralized head office where they coordinate global management.
MNCs are companies that manage production or deliver services in several countries.