The Impact Of Globalization On Multinational Corporations Essay

The Impact Of Globalization On Multinational Corporations Essay

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Globalization has been a major impact when it comes to the Global economy, which is changing every day. Globalization has enabled many businesses to outsource their corporation across their home country border in order to increase their wealth and maximize their production at a lower cost. The outsourcing as cause these businesses to become Multinational corporations (MNCs), which are becoming major contributors to many nations global economy. Multinational corporations can be seen as a global crisis because of the results of globalizations. The increasing investments from the Multinational corporation are building developing countries; however, Multinational corporations placement in that nation does not guarantee developing countries an accumulation of wealth and prosperity for their nation. In addition, a multinational corporation does not guarantee the host country power over the goods that are produced and the value of those goods. In The Politics of Multinational Corporations by Thomas Oatley, argues that these Corporations stakeholders only have a certain interest, which only reflects their interest and not the individuals whose lives are at stake. In addition, that when it comes to who defines the terms of the investment it about who have the monopolistic control. In Bargaining Old and New: Multinational Corporations in Global Governance by David Levy and Aseem Prakash, focus on the effects of how the is bargaining when it pertains to ownership, control, and resources when it comes to the role in the global governance.
This section is the summary of Multinational Corporations (MNCs). According to Oatley, most scholars would define MNCs as “a firm that controls and manages production establishment plants in at lea...

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...ntries like Angola, Haiti, Ethiopia, and Afghanistan. Countries that have a weak government might be easier and less complicated to bargain with who will have control.
Many nations that have Multinational Corporations in their country usually have to go through the process of bargaining over how the firm will be controlled and who will ultimately have the power. Oatley, levy, and Prakash shown that the bargaining theory can cause problems and impacts when it comes to who will hold the power. The globalization has caused the MNCs to develop into firms that are able to take over in some place; while in others they have to be regulated. The scholars have shown that the host country and MNCs bargain for different reasons. For instance, MNCs are more about wealth; whether host countries are about reinsurance that they are not being used for resources and labor.

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