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How Multinational corporations and human trafficking hold Brazil back from development - Research Paper Example

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Globalization has increased the establishment of multinational corporations (MNCs) and their operations in less developed and developing countries. These have led these companies in generating huge profits with respect to minimization of cost…
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How Multinational corporations and human trafficking hold Brazil back from development
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How Multinational corporations and human trafficking hold Brazil back from development

Download file to see previous pages... They bring great opportunities in the developing countries with employment generation, output expansion, and escalation in technical know-how and so on. But on the other hand it brings many challenges too. Brazil is a country whose economy has escalated in recent years and has encountered a large jolt of foreign investments. A major fraction of these investments have generated from the MNCs forming an indispensible part. In Brazil, these MNCs have propelled its economy, but also have contributed to the increased economic inequality leading to elevated poverty levels, loss of markets for the domestic producers and as well as behavioral aspects like identity loss. This has resulted in hindering the development of the Brazilian economy and also threatens its future. Apart from those social menaces like human trafficking is also hinders development. The paper discusses the ways in which the MNCs and human trafficking has declined development and poses a threat to its future. 1. Introduction The rate of intensification of the terms globalization, internationalization, removal of trade barriers has escalated manifold within the framework of global trade in recent years. Mammoth investments are being made by organizations (Multinational and Transnational corporations) of the developed countries in the underdeveloped and developing countries reaping huge benefits for them with cost minimization. These foreign investments within the underdeveloped and developing countries have brought in a large number of opportunities in the form of employment, cultural integration, regional development of these countries (Tankeu, n.d.). Brazil, a Latin American country, has also encountered large foreign investments with MNCs entering into the country creating employment, local development and thrusting the pace of the economy. But this is only a superficial layer of thinking process. The story is not so simple. A deep scrutiny with evidences and reverse thought process reveal that actually the MNCs are hindering the current development of the country as well as its future. Social menaces like human trafficking have increased to elevated levels hitting the Brazilian economy really hard. Thus, having stated this, the focus of the paper will direct towards discussing the ways in which the MNCs and human trafficking are actually hindering the growth of Brazilian economy and pushing it backwards (Hauge & Magnusson, 2011, p.6). The research question that will be addressed in this paper is, “How Multinational corporations and human trafficking hold Brazil back from development?” 2. Research track: For addressing the issue in a proper and transparent manner prior discussion needs to be done with the current situation of the country with respect to development status done under the heading present situation. Within it, the first segment deals with the concept of MNCs acting as hindrance to development. The next section presents data support of the country with respect to its development. After that, the subsequent section will deal with the problem of human trafficking in the country. Then the course of the paper will enter into the hardcore process of analyzing the country’s development hindrance due to MNCs followed by discussion of the issue of human trafficking. 3. Present situation 3.1 Alarming truth –MNCs in development shrinkage The trajectory of globalization through empirical evidences has been seen as two way traffic. At one end, it has acted as a force delivering economic prosperity to people all over the world and on the other hand, it has been blamed for creating huge inequalities ...Download file to see next pagesRead More
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