The Perceived Role of Multinational Corporations: the United States and Saudi Arabia - Annotated Bibliography Example

Running Head: DISCUSSION BOARD OPINIONS Name Course Tutor Date 1. The Perceived Role of Multinational Corporations: A Study in the United States and Saudi Arabia The study involves a comparison of the different social roles that MNCs play in a social perspective in the United States and Saudi Arabia. The study seeks to evaluate the differences that are perceived in developed and less developed countries regarding multinational companies. The intention of the study is to interpret their differences in the two cross sectional cultures. Generally, multinational corporations are seen to have tasks such creating social responsibility, creating jobs, investing in communities around, transfer of technology and innovations and carrying out moral responsibility. There has been continued scrutiny of the roles that multinational corporation play in less developed countries. In developing countries, it is more of support in terms of creation of employment, training professionals and assisting in development. They, therefore, play a crucial role in the economies of these countries (Ahmed, 2008). In order to evaluate the differences, the author uses a statistical approach by studying competing claims that multinational corporations have. Questionnaires with 23 different statements from diverse dimensions were administered to 450 students from the East Coast University in the United States. The same questionnaire was also administered to 450 students from a university in Saudi Arabia. Semantics of agreement were used to rate the responses that students has regarding the different questions. The response systems were structured to include aspects such as gender, work, residence, education and other independent aspects. Significant differences were recorded regarding perceptions of roles that multinational should play in the two countries. The differences in the responses were attributed to the social cultural differences between residents of the two nations. The American and Saudi students seem to agree on issues relating to intuition private and public issues. However, the differences were notable in terms of rationality, compassion and management (Ahmed, 2008). One of the notable limitations of the study is that it focused on students in universities and not the population that is affected by the activities of multinational corporations. In this view, populations other than students may have significant differences in opinion regarding the issue. It is, therefore, not conclusive in a convincing manner not to involve the larger population. However, this offers room for further research and hence create a comparison with the study. Individuals capable of attending universities more most likely well up in society and hence may not be fully aware of social and economic situations affecting the majority. However the study concluded that there were significant differences in terms of social roles with Saudis feeling that MNCs have a more active role than students from United States. 2. Perceptions of managers in Kuwait about multinational corporations In this article, interesting conclusions are drawn regarding how managers in developing countries perceive the roles of multinational companies in diverse perspectives. First, the article involves a diverse study that involves multiple managers in different capacities in organizations in Kuwait. The author acknowledges the situation that is perceived between multinational companies and their activities in developing nations. The situation has been volatile in from natives towards foreign direct investment as they have been blamed for not benefiting locals in significant ways. Multinational companies accounts for a significant sum of foreign direct investments in developing nations which has been driven by globalization and integration of world economies. Developing nations offer numerous resources and sources of cheap labor that these companies utilize (Al-Daeaj, Ebrahimi, Thibodeaux, Nasif, & Ercan, 1999). They are seen as agents of change in terms of creating employment opportunities and filling training and economic gaps in terms of challenges that these countries face. The purpose of the study was to evaluate the perception of mangers regarding the role that MNCs play in terms of social economic, cultural legal, political and technological. MNCS in Kuwait were found to have significant influence in majority of industries that they were involved in in different capacities. The main role that was identified was in the exploitation of oil resources in the country. Oil wealth in the country led to the country becoming a capitalist one and the significant potential of the country was a major attractor of foreign investors. The result was an increase in crime and also creation of an elite class of wealthy individuals. Inequalities between the rich and the poor also increased significantly due to the capitalist approach, hence the increase in occurrence of crimes in the country (Al-Daeaj, Ebrahimi, Thibodeaux, Nasif, & Ercan, 1999). The author concludes that managers in Kuwait have a mainly positive perception over the role which MNCs play in the country. The positive factors that were identified included in terms of economic development, and technological advancements in the country. However, managers viewed that multinational companies had a negative effect on the social cultural aspects of the country. This was attributed to the foreign personnel that are brought in the country whose social and cultural behaviors had a negative effect on that of the natives. One limitation in this article is that the views were purely on managerial capacities. Managers may have themselves benefited from operations of multinational companies but poverty among the common citizens still remained high in the country. 3. The Role of Corporate Risk Managers in Country Risk Management: A Survey of Jordanian Multinational Enterprises Developed nations have been finding it difficult to operate in countries which have volatile situations in terms of political, military and civil perspectives. The risk of operating in volatile nations not only lies in the loss of resources and investments but also in the capability of loss of life as well in this view that article is significant in trying to evaluate the role of risk managers in evaluating potential risks in such countries and providing guidance on how such situation should be handled. In order to draw conclusions son this important issues, a survey was conducted in multinational companies operating in Jordan (Al Khattab, 2011). In the article, the author considers the increased need for assessment of risks in volatile nations as a way of safeguarding life and property of foreign investors. He also acknowledges that the interests of local stakeholders are also safeguarded in the risk management portfolios as they are part and parcel of the investment activities carried out by the multinational companies. Jordan has experienced immense growth in its mining, manufacturing, and pharmaceutical industries over the years. The banking industry is also flourishing in the country despite the instability in the region. As a result, it is crucial to study the manner in which risk management is carried out in order for other nations with similar situations to emulate and learn how to manage accordingly (Al Khattab, 2011). Despite some countries having higher risks than others, international businesses continue to grow, driven by integration diplomacy and globalization. The author finds out that risk managers play significant roles in determining the way investments are carried out in Jordan. The risk assessment portfolios provide information on available opportunities that can cope with the prevailing risks in manner that is manageable. A majority of the risk managers are tasked with the responsibility of projecting situations in the country and advising potential threats that may exist. They then advise investors accordingly on measures to prevent losses and also advise on how to manage different aspects of the businesses. This calls for skilled risk management capabilities due to uncertainties associated with operations in such countries. However, there still remains a lot of room for research in this area as a lot has not been documented in this aspect. The author also fails to mention the role of other stakeholders in managing businesses in high risk environments. 4. Motives for Foreign Direct Investment in Oman Different foreign investors invest in different nations with different motives. The interesting story about Oman is that it attracted more foreign investments sin the 1990s more than any other country in the region. As a result, researchers were curious as to why investors preferred Oman to other countries with similar or even better conditions. The study sought to find out what are the driving factors that lea d to foreign investments in Oman. It also sought to find out whether different investors from different regions have different motives and the emphasis which they put on them before making the investment decision it is worth noting that before the discovery of oil in the 1960s in Oman, more than 90% of economic activities revolved around agriculture, since then the economy has transformed and more than 90% of its wealth is generated from oil exportation (Mellahi, Guermat, Frynas, & Al-Bortmani, 2003). The methodology used in the study involved analysis of data from 106 foreign investment ventures which was analyzed and used to draw conclusions in the study. There are many aspects that determine the interest and the final decision to invest in foreign countries. First, government policies on such investments are necessary for consideration. Further, the motive behind the investment is also an issue for consideration as it determines the objectivity and goals of the entire venture. The study was quite diverse as it involved investments from 15 different countries that had foreign equity in Oman. This ensured a conclusive study that was comprehensive in terms of the major foreign investors sin the country and in the region as well (Mellahi, Guermat, Frynas, & Al-Bortmani, 2003). To a large extent, the study concluded that economic and political stability were among the main factors that determined the motives and interests for investments in the country. Government policies and incentives to such investments also played a huge role in determining this. Further, outsourcing of technology to enhance exploration of oil wealth in the country also affected policies that authorities sin the country used to control foreign investment. The study used a combination of statistical and quantitative methods to draw conclusions regarding the motives, origin of investors and major determining factors. It is interesting that the purchasing power of citizens in the country was not among the top reasons for investors to be attracted to the country. Investors in the country do not also perceive foreign investment different from diverse industries in the country. Due to the comprehensiveness of the study, it offers important lessons to policy makers sin Oman regarding the approaches they should follow when dealing with foreign investments in the country. 5. An Analysis of Productivity Change: Are UAE Banks Operating Efficiently When Compared to GCC Banks One interesting fact about the article is that it is the first to study the issues of productivity in regard to banks operating in the UAE compared to others operating in the GCC region. It is therefore crucial in drawing significant conclusions that have not been studied extensively before. Islamic banking is different from other conventional banking systems. It is also important to establish the effect of this on the UAE economy as well. The author f the article states that the banking system of a country is very significant in determining the direction which the entire economy takes. GCC countries are heavily dependent on oil revenue for their economic prosperity. When oil prices were down in the 1990s, the countries experienced economic slumps (Kashani, 2010). When they skyrocketed a decade later, the countries recorded immense growth in their economies. The overall study found out that UAE banks we operating in a better situation than their counterparts sin the GCC. However, Kuwait and Qatar recorded slightly higher than UAE. It however performed better than all other countries in the region. Though the indices displayed some differences in efficient in the banking systems in the region, the differences were not considered statistically significant and hence it could generally be said that the efficiency was sailor. Islamic banks in the country did not also show significant differences with the conventional ones (Kashani, 2010). Over time, banks in the UAE were able to show increase in efficiency while their counterparts in other countries were showing declining efficacy. The methodology used in the study used both data and non data information efficiency was measured using production functions that were used in operations of the banks. Stochastic Frontier Analysis and Data Envelopment Systems were used for analysis of information collected from the banks. The limitation of this methodology is that each of them has limitations in terms of type of data it can handle. Using them concurrently is, however, important in order to offset and complement each other where limitations occur (Kashani, 2010)Some of the methods used only give overall efficiency and do not breakdown the efficiency in terms of sectors or individual banks sued in the studies. Further the methodology does not allow input of more than one variable and hence may bring contradictions in cases where there are many variables. 6. The Impact of Dubai Expo 2020 on the UAE Economy.  It is interesting how the UAE has grown economically over the last few decades. Five decades ago, it was a desert country with no significant infrastructure. Today, it has placed itself on the global map with some of the most outstanding works of architecture in the world. Success has been attributed to the management of its oil wealth which has seen its economy flourish. As a result, one of its main cities, Dubai has entrenched itself as a business hub to an extent it won the bid to host the Dubai Expo in 2020. Dubai itself has seen an increase in non oil revenue significantly. This revenue is generated from the tourism and construction businesses which have increased overall in the country (Xinhua News Agency, 2013). Interestingly, western countries like Britain have expressed their full support for the expo in Dubai as a way of recognizing their significant economic milestones the expo will have a significant impact on the economy of Dubai,. Given that energy needs in the world today are on the rise. , it places UAE in a crucial, position as a one of the major oils suppliers to the world. As other Arab countries struggle to sustain growth, UAE has invested heavily on diversification to include aspects of the economy that other countries in the region do not have. As such holding the expo is mile stone in bringing the business world to UAE (Xinhua News Agency, 2013). It will be a chance for the country to showcase some of its most ambitious plans and projects that are currently underway as well as the completed ones. With oil wealth set to start declining over the next few years, UAE has placed itself in a significantly strategic position to offer alternative sources of economic activities that the country can rely on in future. With projections showing a continued boom through to 20202, it can only be projected to what extent the expo will improve the economy further. The world is now turning its eyes on UAE and this significant opportunity will enable investors from all over the world to converge there and showcase their ideas to the country and the world at large. The potential of the country is far from full exploitation. Continued management of economic wealth portfolios will ensure that the expo bring maximum benefits before 2020 and beyond. References Ahmed, M. S. (2008). The Perceived Social Role of Multinational Corporations: A Study in the United States and Saudi Arabia. International Journal of Management, 25(3), 578. Al Khattab, A. (2011). The Role of Corporate RiskManagers in Country Risk Management: A Survey of Jordanian Multinational Enterprises. International Journal of Business and Management, 6(1), 274-282. Al-Daeaj, Ebrahimi, H. S., Thibodeaux, B. P., Nasif, M. S., & Ercan, G. (1999). Perception of Managers in Kuwait About Multinational Corporations. International Journal of Commerce and Management, 9(3), 78. Kashani, H. A. (2010). An Analysis of Productivity Change: Are UAE Banks Operating Efficiently When Compared to GCC Banks? Academy of Banking Studies Journal, 9(1), 13-38. Mellahi, Guermat, K., Frynas, C., & Al-Bortmani, H. (2003). Motives of Foreign Direct Investment in Oman. Thunderbird International Business Review, 45(4), 431-446. Roundup: UAE economy achieves spring boom. (2013, May 17). Xinhua News Agency - CEIS. Retrieved from http://0-search.proquest.com.alpha2.latrobe.edu.au/docview/1353075011?accountid=12001 Read More