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How Have Changes In The World Economy Since 1945 Affected Room For Manoeuvre Of Multinational Firms - Essay Example

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Multinational corporations have been in existence for a major part of human trade and economic history. These corporations have found their earliest beginnings through the British East India Company, the Hudson’s Bay Corporation, and Royal Africa Company. …
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How Have Changes In The World Economy Since 1945 Affected Room For Manoeuvre Of Multinational Firms
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Download file to see previous pages The end of the Second World War brought about a variety of global changes, from the political, to the economic, the social, and the cultural. These changes helped the global recovery of many countries which were damaged by the war. Significant investments to industries and rebuilding activities were made by various corporations soon after WWII and these activities were spread out in various parts of the globe. These activities have impacted significantly on how corporations have carried out their activities. Eventually, multinational corporations rose from the ravages of the Second World War via numerous branches in different parts of the world. Various economic opportunities gave these MNCs a chance to grow; however, it also presented them with significant challenges in terms of competitive advantages and profitability. Based on these considerations and under these conditions, this paper shall now discuss how the changes in the world economy since 1945 have presented room for manoeuvre of multinational corporations. It shall discuss the significant changes seen after World War II and how these changes have provided an avenue for the expansion of multinational corporations. ...
Some of these corporations opted to close their operations in these former Asian colonies, most likely in order to keep the secret of their technologies. These corporations also became more guarded with their technology, choosing to withdraw their operations from the countries rather than to allow the host nations to control these operations (Shaikh, 2010). In effect, the subsidiary operations of corporations in the former colonies declined. Through increased tariff and legislative restrictions on the corporations, corporate activities continued to decline (Glyn, 2007). After the Second World War, economic activities increased in pace and this caused MNCs to shift and adjust their activities in order to meet increasing demands on their capital, their labour, and on their legislative local host country policies (Glyn, 2007). These changes presented developmental issues to these corporations within an expanding context of globalisation and liberalism. However, just as the more liberal economic processes have presented better opportunities for expansion, these have also served to impose legislative limitations to economic growth and development (Arrighi, 1994). This discussion shall evolve around the changes and the challenges which multinational corporations have been faced with in the years following the Second World War and the changes which these MNCs have had to make in order to thrive and survive in the post-WWII era. B. Historical context and scenario for MNCs following the WWII A major shift in macroeconomic considerations and policies after WWII has been seen and this shift has been considered as a major move by Western nations using Keynesian policies to the liberal and free-market policies (Mohamed, 2008). This change has been considered ideological and is ...Download file to see next pagesRead More
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