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Globalization, Foreign Direct Investment (FDI), or Multinational Corporations (MNCs) - Essay Example

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A purported challenge realistic critics overblow is globalization resulting to instability; however, a more significant challenge from a liberalistic critic is it leads to inequality and poverty among Less Developed Countries (LCD) which is contrary to its main objectives. From…
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Globalization, Foreign Direct Investment (FDI), or Multinational Corporations (MNCs)
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Globalization, Foreign Direct Investment (FDI), or Multinational Corporations (MNCs)

Download file to see previous pages... On the other hand, poverty and inequality emanates from disorganization and injustice among the developed countries in the global market who instead should work at developing the global economy to greater levels.
According to Cohn’s perspective, globalization entails activities that assist countries and societies to broaden and deepen thus increasing their interdependence around the world. Broadening and deepening is the establishment of links and using them to increase the regularity and intensity of the communications, transactions, relationships and general interactions among the involved societies and states. Globalization has led to developments in management and other significant sectors in the corporate world as companies come up with excellent strategies to overcome the competition and as a way of keeping up with the trends1. The vast growth in international market relates with developments in areas such as communication and transportation technologies that are key facilitators of the strategic links between the participating states and Multinational Corporations (MNCs). However, globalization’s impact varies in the different countries and in most cases; it threatens the domestic autonomy causing issues among the local economies. Upon entry into the international market, countries take up new roles and responsibilities, that allow them to make any policy choices. The policy choices are the determinants of states and societies’ experiences of globalization i.e. unity and cooperation or fragmentation and conflict. Multinational Corporations (MNCs) are companies that distribute goods and services across borders with an aim of spreading ideas and controlling assets in more than one state. They play a significant role in globalization and economists argue they make the greater part of it. MNCs mostly practice Foreign Direct Investments (FDI): in order to manage rights and control economic transactions in different states.
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