Outline Title: The Development of Multinational Companies has brought more benefits to the world. Discuss I.
Thesis Statement: Multinational Companies is important to world. They give both Advantages and Disadvantages to the world. II. Main Idea: Advantages (A). Overseas Job Opportunity (B).
Skilled Workers to the world (C). Joint Venture (D). Introduce New Technology (E). Global Economic Competition III.
Main Idea: Disadvantages (A). Environment Damage (B). Introduce New Technology (C). Minimum Wages Pay (D). Increase Global Food Crises (IV). Conclusion: The multinational Companies very important for the world.
They bring Advantages and Disadvantages to the world. In my view world organization should establish the rules for the multinational companies. The Development of Multinational Companies has brought many benefits to the world. Discuss The multinational companies have business more than one country and they manage production or services. This companies headquarter is one country.
Headquarter is operate others countries companies. Example (Coca-Cola, Macdonald and KFC). They entered to market around 17th and 18th centuries. But they close to market 19th century. In present they develop with power.They have relation with deferent parts.
They are gaining power from them. Those are local, national government agency, international trade federation, local, International Organizations. There are in world nearly 4000 multinational companies. They currently operate the global economy. They have brought many benefits and disadvantages to the developing countries. When they open new companies new place they provide advantages and disadvantages to that country.
Such as invest more money. But they pay to local workers low wage and they send profit from their country.The multinational companies bring technology and knowledge to the developing countries. Sometimes this technology may be dangerous to country. The companies help to increase transport area. They give jobs to local people. But regularly they bring their own people to do them.
In present these companies has brought to world advantages and disadvantages. The advantages are Overseas Job Opportunity: the multinational companies create more job opportunity to the world. They create job opportunities in production and marketing activities. When they open new branches in new country they bring more employment opportunity.It is better reason for reduce the unemployment.
Skilled workers to the world: Multinational companies always offer training, knowledge and experience to the workers. They held training programs to them. They improve workers ability. They provide qualified workers to the world.
Joint venture: Multinational companies keep partnership with local companies. They keep partnership with country. These countries have communist rules. Example (Eastern Europe, Soviet Union) The Benefits are they can transfer technology and management proficiency. Introduce New Technology: They produce new goods by use new technology.Example (mobiles phones, new vehicles, and machines) they improve new technology.
They can do task easier. In present people spend busy life . so that new goods are very important to people. People can do their work so fast. It helps to Reduce cost product, less workers, get higher profits, and get higher income.
Global Economic Competition: Global economy competitions have always been hotly debated issues, promoting different opinions among economist, management strategists, business leaders and policy analysis and consultants. Global competition provides a broad frame work.Global economic competition mostly depends on multinational companies. As an example, if any multinational company (Coca-Cola, Sony, Dell….
etc) come to our country it will provide more benefits. Such as international relationship, foreign direct investment, migration, trade and new technology…etc. international market who are just beginning to target in other countries and learning how to build operations in these market. Today an increasing number of small and medium size firms are going global and their concern are markedly different from those of established ulti-nationals. Multinationals companies are a corporation or enterprise that manages production establishments or services in at least two countries.
Very large multinational companies have budgets that exceed those of many countries. They play an important role in globalization. There are very important to our daily work, such as education, communication and transportation main takes an important places. Multinational companies bring same as disadvantages to the world. These disadvantages are very harmful to the world.Disadvantages are Environment Damage: Multinational companies do more damage to the Environment. They do more environment damage to developing countries.
They don’t listen in them. Example for that the famous three companies recently did more damage to the environment. Gulf of Mexico oil spill damage did by BP. There was worse ecological disaster. This did high cost damage to environment. BP has to pay $20bn fund to U. S. government to clams this damage.
Sometime this amount can be increased. Because U. S. is powerful country there is strict rules against to them.
Gas leak in Bhopal this damage did by Union Carbide Company. It was 1984. More people die immediately. More people maimed seriously. High cost damage did to people and environment. They paid $47m to Indian government.
It is small amount. It is not enough to cover the damage. Texaco Chevron Company did oil leak around Nigeria, Ecuador’s and amazons. It is larger than gulf oil spill. Oil leak to indigenous people area.
people die from the poisoning. Many people had died of cancer. Because of oil contamination. oil has mixed to ground water. It had damaged to rainforest.This disaster did high cost damage to environment. The company paid $40m to Ecuador government as a cleanup costs. It is too small amount.
They didn’t pay enough money to cover this damage. Introduce New Technology: Introduce new technology have more disadvantages. People may be lazy. It is hard to manage. New skills need, maintenance new technology will be hard. Because it is need more knowledge to people. Cost may be expensive.
The thing is purchase to product should have more money. Minimum wages pay: The multinational companies try to deal with developing countries.Because their labor cost is less. They can pay to workers national wage. They can cover cost. They send their profits to headquarters.
Local labors have to face job risk. In recent multinational companies continue to export jobs to chap overseas labor market. Increase Global Food Crises: in present most of countries have faced to food crises. This problem most effect to world.
Multinational companies increased food and fertilizer prices. This is not good thing. They earn more profits. Developing country needs foods. World foods stock less. More people live in hungry.
Conclusion: in today multinational companies have advantages and disadvantages. They help to develop the world but same as they destroy the world. In my view they do lot of damage to the world. Every country should have rules for them. Otherwise they try to work their own theory. There should be some barriers against to them. If not any one can’t tackle them.
References: Edridge,g. j. (2010) Multinational Corporations Encyclopedia of Business. 2nd edn Lean,g. (2008) `Multinationals make billions in profit out of growing food crisis’, The Independent Khaor,M. (2010) The double standards of multinationals