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Identify a purported challenge or problem of globalization, foreign direct investment (FDI), or multinational corporations (MNCs) that is overblown by critics from one of the theoretical perspectives identified by Cohn and another that is not (i.e., it is - Essay Example

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Globalization refers to process whereby diverse states integrate in terms of trade with the intention of exchanging merchandise, technological advancement as well as sharing information regarding, which appropriate policies they ought to embrace1. The concept of globalization…
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Identify a purported challenge or problem of globalization, foreign direct investment (FDI), or multinational corporations (MNCs) that is overblown by critics from one of the theoretical perspectives identified by Cohn and another that is not (i.e., it is
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Download file to see previous pages The term mainly denotes acquiring absolute control of a business organization in a foreign nation3.The Multinational Corporations (MCIs) are the organizations that extends their trade in foreign states leading to more FDI in the involved states. These three term go hand in hand linked in way that each of them leads to the other. However, some theorists contend there are several challenges these processes encounter some of which being more emphasized than others are.
According to the IMF study, globalization could plunge developing states’ economies in unbearable situations by imposing certain measures that influence them adversely4. The rise of MNCs is a result of augmenting global trade, 5which are the key components of globalization. Critiques of globalization contend its encouragement yields to diminished control of a democratic regime as well as transfer the powers to the MNCs. This is because these international firms are devoid of any accountability to the local authorities because in most instances besides meager earnings end up not caring local regions’ settings. This argument was further backed by Cave, an economist’s theorist that firms should prevail over the host firms in terms of economic development realized by the profits of FDI. His assertions further demonstrate how these MNCs benefits from the lack of accountability hence they can further their own interest at the expense of the local regulations5.
Some visionaries additionally assert that as the economy continues to improve its status, concurrently yields to environmental degradation due to excessive resource’s exploitation6. They authenticate their claims by citing the current increased levels released CO2 from vehicles fumes continue to worsen climate. Similarly, other activists allege globalization results from increased movement of labor across states with many ...Download file to see next pagesRead More
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