Multinational corporations and international organizations
Large international corporations have been widely criticized for the destruction of local businesses and for forcing their own products and culture upon other countries. One of the most eloquent example of such behavior is McDonald's, for the expansion of which specialists used the term McDonaldization "to describe the phenomenon of local cultures being stamped out by multinational corporations spreading a homogeneous Wester (usually American) culture." However, economists' opinions on the matter vary: the advocates of globalization state that the international corporations aid to the development and enlargement of other countries' culture, while disclaimers of globalization believe that the process destroys local small companies and damages the countries' culture.
In order to control such behavior and prevent large multinational corporations to damage other countries' culture, international organizations have been formed. These organizations play a judging role on the international market as they attempt to regulate monopoly and install rules of commerce. For instance, the Committee of Economic and Social Council states that these organizations ought to: "make the process of market liberalization more stringent through audits and inspections; make the inspection and monitoring process compulsory; encourage the implementation of financial incentives such as tax reductions or low interest loans by member states and international financial institutions; implement awareness programs to educate members upon the long-term benefits: general education, fair wages, good working conditions, sharing of basic technology and health care."
The problems of multinational corporations
One of the most severe issues regarding multinational companies and globalization refers to the processes of outsourcing and offshoring. These two terms are rather similar and imply that local producers chose to employ foreign contractors instead of national workers. By deciding to employ human resource from abroad, the producer directly contributes to an increase in the unemployment rate in his country and indirectly to economic decrease.
Among the most relevant reasons behind outsourcing are lower costs and better quality of the products and services. However, the impacts upon the...
This "crippled operations" not only in local businesses but in companies located in the most affected regions that supplied materials for manufacturing. In other words, Japan suffered from a shutdown of many companies that provided certain parts for cars and electronics. For example, the area that was slammed by the tsunami was a "supplier hub" where companies like Hitachi produced special parts -- including a "…$2 sensor that is
The result has been newfound freedoms of speech, freedom of travel and incredibly, freedom of dissent, even to small extent. Globalization is the fule that nations need to find what their true competitive strengths are. Coddling nations through protectionism and subsidies is like taking protein or iron from their diets; over time, they will atrophy and die due to a lack of infusion of capital, competitive vibrancy and growth.
By 2050, it is projected that only India would be recording growth rates significantly above 3%. Incomes and Demographics By 2050, despite much faster growth, individuals in those countries are still predicted to be poorer than those persons living in any of the now G6 economies . Russia is the exception, essentially catching up with the poorer of the G6 in terms of income per capita by 2050. By 2030, China's
Two alternative solutions are available. The first sees that the U.S. federal authority uses the budget allocated to support the development of the national industries, without raising barriers to imports. The second possible solution is for the United States to strive to increase its exports by focusing more on international operations. Criteria / goals The evaluation criteria for the proposed solutions revolve around the benefits they generate, as well as the
Globalization's Effect on the United States' National Security Objective of this paper is to explore the impact of globalization on the United States national security. The study defines globalization as the increasing global relations of people, corporate organization and government. There is no doubt that the globalization provides numerous benefits to the American economy. Despite the benefits derived from the globalization, the advent of globalization also provides some threats to the United
They might only be more efficient when externalities are not considered, but in the real world of globalization externalities are important. Understanding what to do about these problems and how to take advantage of the opportunities presented by globalization requires a strong understanding of what globalization is, and even that remains a point of some contention. Works Cited: Higgott, R. & Reich, S. (1998) Globalisation and sites of conflict: Towards definition
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