Multinational corporations (MNCs) produce and deliver goods or services from various geographical locations. In most cases, they specialize in a specific category of trading activities in order to ensure that they become consistent in terms of production and gaining access to a wider market share. In order to make sure that they achieve optimal efficiency in their operations, multinational corporations often carry out a strategic selection of specific host nations. Brooks (140) notes that the current global commercial environment does not respect borders and the degree of international relations has to become limitless. There is indeed an extreme and influential economic emergence of elite and powerful multinational organizations across the continents. The following part of the analysis takes a closer look at the state of multinational corporations, the role they play in regards to globalism, the evidence and critique of globalization as well as a wrap up of the phenomenon of contemporary organizational relations as a critical issue in world affairs.
Multinational companies have been continually expanding their activities to major markets across the globe. This is definitely due to the expansion in the business outlets in all countries. The demand for supplies on a large scale has also called for the scope of their supply to be globalized. Kleinert (70) points out that the emergence of organizations with branches in several locations has led to the globalization of every aspect of modern society. He notes that the business ventures of these corporations are widespread enough to the point that there has been a growing need for various states across the globe to cooperate in one way or the other so that they can enjoy mutual benefit (Kleinert 90).
There is a trinity of features that operate in today’s world. These include the economic, social, and political spheres of society. Multinational corporations have established inseparable connections of these important pillars in every government’s programs (Guillen 200). Kleinert (150) notes that multinational corporations play a primary role in the dynamics of industrial wellbeing. There are several major areas in which multinationals affect the balance in society. For instance, multinationals are quite instrumental in the growth of host economies due to the expanded levels of production and trading activities. This has made the public agencies and institutions to implement international programs in conjunction with other nations. In addition to this, government policies and economic regulations require all organizations to pay taxes and comply with local rules. This has created a sense of corporate unison, which in turn has led to a common working ground by multinationals (Brooks 125).
Multinationals have been playing the inevitable role of providing jobs to citizens in various countries, especially where such corporations are located. The latter takes place regardless of the nationalities of job seekers. The creation of a state of free movement of labor by the international business community has led to progressive globalism. Kleinert (123) notes that the most effective way of stabilizing nations’ economies is by the opening of the borders to allow multi-national companies to expand their business ventures. On a different note, it is important to note that the enthusiasm and focused interests of multinational companies are reflected in the governments’ external projects.
Brooks (200) notes that governments have centralized their business security by having a common understanding in the sense that they are all pursuing similar goals. He also elaborates that the welfare of developing nations needs the input of all other business players if the global economic development is to be triggered and thrived accordingly (Brooks 200). To sum up, the great effect of multinationals in the creation of a global economy is that of the power they exercise in all local markets. In addition, these corporations have interlinked the world market by making endeavoring to extend their operations far and wide. The activities taking place in all industries have therefore been exposed to all business people just like the activities of a village are known by all villagers without much research.
Activists, laymen, and intellectuals have been keen enough to analyze and critique the high number of multinational corporations being established in the modern world. Guillen (220) sums up the efforts of these parties by noting that they all feel that the rapid rise of multinational organizations poses a big threat to the general civil rights of societies. He notes that the bodies have disintegrated the privacy of consumers (Guillen 221). The arguments posed by critiques are indeed valid since it is clearly notable that multinationals have been participating in the ill activity of creating manipulated needs in consumers. They interfere with the policies set in sovereign nations. Besides, massive psychological ways of advertising such as guerilla marketing, child-targeted adverts, telemarketing, spam, adware, television adverts, and electronic billboards are significantly harmful to the social wellbeing of the society (Brooks 122). It is relatively important to consider the global sagas of international companies that have distorted the harmony of society by their disguised activities. Guillen (116) criticizes the colonial effect of powerful multinationals by urging anti-corporate advocates to pressure all multinationals to give feedback to shareholders, to be sensitive to human rights, and also show consistent concern to environmental issues.
The most exhilarating view of the issue of multinationals is the dispensation that they are important and essential elements of the existence of human life in this modern society. The role played by multinationals in establishing the economic lives of nations cannot be disregarded because of their numerous demerits (Kleinert 109). By being dynamic, multinational corporations have been able to create highly competitive industries in many countries. It is critical to note that without these bodies, some nations would not be able to drive their economies to some significant stability. Multinationals help governments in economic programming. There is a noble aid given to the government in the strengthening of its projects. MNCs avail financial aid and have been a key factor in the establishment of local businesses in respective host nations.
In addition, these corporations give governments an income base that is used to subsidize the budgets of local public investors. Guillen (300) also denotes that the activities of multinationals will continue to be useful to various economies of the world if they are not restricted to their right channels. International contemporary organizations have a relatively unpredictable relationship with multinational corporations. Their coexistence keeps on shifting from one perspective to another. Brooks (289) points out that the ever-present global changes have had an impact that debunks the existence of business empire states and immovable global monopolies. As a matter of fact, due to rapid changes in different aspects of organizational survival, the relationships of competing organizations have become mechanical and more elocutionary. Moreover, technological advancement has placed all international organizations into positions that invigorate their power even when they function in areas dominated by multinationals.
Globalization and remarkable advancement in technology have resulted in the expansion of many businesses into large scale operations. The enlarged organizations are the ones that have been labeled and commonly known as Multinational Corporations (MNCs). Since MNCs venture into the large scale of enterprise building, they end up creating considerable economic progress in host nations. In order to be rational and economically categorical, it is fair to note that the overall effects of MNCs have largely contributed towards the development of world economies. Nonetheless, the economic development brought about by the activities of MNCs has not been realized without a cost on host nations.
Works Cited
Brooks, Stephen. Producing Security: Multinational Corporations, Globalization, and the Changing Calculus of Conflict. Washing ton: Princeton University Press, 2007. Print.
Guillen, Mauro. The Limits of Convergence: Globalization and Organizational Change in Argentina, South Korea, and Spain. Washington: Princeton University Press, 2003. Print.
Kleinert, Jorn. The Role of Multinational Enterprises in Globalization. New York: Springer, 2004. Print.