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This report seeks to clarify this debate by evaluating the work of other researchers. Following the literature work of other researchers, relevant theories including Neo-Classic theory and Global reach has been discussed. Finally the analysis has been done to reach on a conclusion.
Multinational companies have been a force for a century and one group of people believe that these companies have their root in the British East India Company of the 18th century; whereas, the other group believe that root of these companies is in 17th century Dutch (VOC) Verenigde Oost Indische Compagnie (Hijzen & Swaim, 2008). The point of Hijzen and Swaim highlights the point that multinational firms have been a force for a century now and their emergence is not a recent phenomenon.
It is interesting to note that most of the researchers do agree that multinational firms are a force. A general argument is that inward investments made by multinational firm is a force for political, social and economic progress of the state for improving the rights of people however, this approach is limited because of various governments are very repressive (Kuhn). Multinational firms appear to exert powerful force in the developing country especially in the provision of health and safety and they are even more influential than governments and local cultures (Ladou, 1996, pg. 363-366).
Multinational companies not only influence the host countries but they have a strong impact on both home and host states. Japan and United States are two major countries which are either the home countries or sources of FDI in the world, therefore, the role which MNEs are playing in both of these countries are directly influencing the decisions of policy makers and private sector leaders (National Academic Press, n.d., pg.16).
The strong influence of multinational firms is insisting the governments to regulate the operations of these giants. Economic regulation of multinational world is a
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Capitalism has been adopted by most of the states in the world due to its competitive nature that accelerates economic growth. Equally, capitalism gets best suited in a democratic country and such, most of the democratic countries in the world use this economic system.
Not only that but it is also encompasses a system that allows people the freedom to choose their personal jobs, the products they buy, the prices they buy them at and the liberty to choose them at the best value. In short, capitalism is rightfully described by Murphy as free enterprise (Murphy, 2007, p.1).
Herein, it has been determined that accelerated profit margins are usually associated with the distanced trading ventures with a considerable risk. Capitalism is recognised to be an economic system where the private sector takes the entire control over trade, means of production and industry.
As the report stresses capitalism is a system that has gained so many plaudits over the year for the effects that it inflicts into a business or a society. A number of business organizations have succeeded for their adoption to the capitalism system. The same has accrued to a number of nations as well as societies that have embraced capitalism.
He felt a gun would give him an opportunity to show them that he was a man, and should be treated and respected like one. Later on after obtaining his prized gun, his frame of mind changes to excitement as he walks to work for his boss, Jim Hawkins and his mule Jenny, he anticipates firing the gun for the first time.
According to the discussion there are several reasons that lead to the need for firms to spread their wings beyond the home base and seek markets abroad. The reasons why firms establish bases in foreign countries are myriad. It might be in search of new markets if the home ones are saturated or if competition has become too stiff.
But the thing to consider is which outweighs the other. The advantages multinational corporations bring to economies, is it worth it. Is it really a win-win situation for all and does it benefit everyone or are these free
As the name indicates, MNCs are Multinational companies, which operate in multi-nations as part of the internationalizations strategy, and thus are being influenced by various factors. That is, with every firms wanting to expand their geographical reach and make an imprint
It is usually characterized by capital accumulation and the competition among the producers. The owners who are not laborers in the firm, the objective of work to profit the owners and the social classes or hierarchies that are produced by
The aim of this paper is to explore the nature of the multinational enterprise. There are many different definitions and interpretations of a term “multinational enterprise” or “multinational firm”. One of the most common definitions describes MNE as “an enterprise that controls and manages production establishments located in at least two countries.
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