The Role of
Multinational
Corporations in the
Global Economy
Introduction:
MNC (multinational corporation) is a corporation or organization which it runs in many
different regions or countries. The role of MNC e.g enhancing market power, lowering
production costs, and mitigating risks. (more info below)
The Role of Multinational Corporations:
MNCs usually aim for much bigger objectives than other companies. The focus MNCs have is
to grow their market, economic growth and market expansion with the profit maximization
remaining as the primary goal. This is how MNCs see objective such as international trade,
resources etc. would.
Impacts on Local Economies:
Many organizations have positive and negative impacts on the local economy. The positives:
The employment, technology and the contribution to the economy or infrastructure.
However, there are concerns about the rights of workers like the safety. Multinational
corporations are against many challenges, I am talking about things such as:
The insanely cheap labour that is being exploited, letting go of the ecosystem, which they
face scrutiny for.
Ethical Considerations:
The work of international organizations raises ethical issues regarding workers' rights,
safety, environment, and culture. They face issues such as tax evasions, pollution, and poor
working conditions. They would need to face the challenges and get a good business
management in order for them to get through the challenges
Case Study Analysis:
For example, Apple, which has faced problem with workers or labourers, Apple has made
efforts to improve the conditions of labour with time however there are still major
challenges that the company faces. Apple has evolved over time with their economy
generating substantial amounts and their sales skyrocketing to the top, however the
company still faces issues such as business practices which they end up with a pile of
company loses.
Conclusion:
My conclusion, a lot of organizations (internationally) are highly active with the
commodities such as: international trade, the creation of business models, and the
relevance of local communities. Business opportunities are provided but meanwhile the
issues they bring need to be resolved. Solving these issues are important as the business or
market is expanding.
Sources:
https://www.study.com
https://www.online.uttyler.edu
https://www.online.maryville.edu
https://www.google.com
Economics study guide
https://www.hilarispublisher.com