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The presence and power of multinational corporations illustrates what?
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∙ 13y ago
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∙ 13y ago
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Why are multinational corporations criticized and how do multinational corporations counter the criticisms?
These companies often have considerable power and influence, and as a result are often criticised for their actions. One of the most famous of such cases was the problem faced by Nestlé in selling its baby milk in Africa. Critics pointed out that Nestlé was pushing the product on people when it was likely to cause harm to babies. According to a study in the British Medical Journal in 2003, the company was ignoring a code of conduct on marketing the productto countries in Africa. In addition, events like the Bhopal chemical explosion in 1984 have attracted much criticism. The incident took place in the Indian city of Bhopal and resulted in the death of more than 3,000 people, according to official figures. The plant belonged to the American chemical multinational Union Carbide.
What are the major objectives of multinational corporation?
LEARNING OBJECTIVES About the international operations of Coca-Cola Company. About the nature of multinational corporations. How to measure the international dimensions of a multinational corporation. How foreign direct investment is a measure of the impact of multinational corporations on foreign economies. How progressive interests are attempting to use the Alien Tort Claims Act to control multinationals. About the role of codes in regulating the conduct of multinationals. About the role of the United Nations Global Compact as a leading international code of conduct. The story of Union Carbide Corporation and the Bhopal, India gas leak. SUMMARIZING OUTLINE This chapter defines and characterizes the multinational corporation and explains its impact in the global economy, particularly in less developed nations. Then, the chapter discusses efforts to stop abuses of power by multinationals, including Alien Tort Claims Act lawsuits and the development of international codes of conduct. ƒá The introductory story is a sketch of Coca-Cola Company as a multinational corporation. ƒá The company is the world¡¦s largest manufacturer of nonalcoholic beverages. It does business in 200 countries. It makes billions of dollars of investments in foreign countries. However, the vast majority of them are in the U.S. and Europe. ƒá Coca-Cola has encountered severe criticism of its foreign operations. Examples are given. The company has adopted an array of social responsibility programs. ƒá A multinational corporation (MNC) is an entity headquartered in one country that does business in one or more foreign countries. ƒá MNCs vary greatly in their strategies and structures. Overall, there are five tiers of internationalization that represent alternative ways to extend business into foreign markets. These are export sales, foreign sales offices, licensing, foreign direct investment, and global production. ƒá The United Nations calculates there are today about 77,000 MNCs and they have 770,000 foreign affiliates. Their international operations, as measured by foreign direct investment, have grown rapidly over the last two decades. ƒá One method of measuring the multinationality of a corporation is to calculate its transnationality index, which is the average of three ratios: foreign assets to total assets, foreign sales to total sales, and foreign employment to total employment. Part 2: Chapter Objectives, Summarizing Outlines, And Case Notes ƒá The story of Weatherford International illustrates how multinational corporations can loosen the bonds of attachment to their home country by operating through foreign affiliates. ƒá The best measure of the power and activity of multinationals is foreign direct investment, or funds invested by an MNC for starting, acquiring, or expanding an enterprise in another nation. ƒá MNCs make foreign direct investments to enter markets, to grow by expanding beyond small domestic markets, and to lower production costs by creating cross-border value chains. ƒá Most FDI goes to developed countries, but FDI in less developed countries is significant because it can have a great impact on local economies. Progressive activists believe that this impact is often very negative and have sought to limit the power of MNCs. ƒá Activists seek to use the Alien Tort Claims Act to apply elevated standards of human rights, labor rights, and environmental protection to the actions of MNCs in developing nations. ƒá This is a 1789 law permitting foreign citizens to litigate alleged violations of international law in U.S. federal district courts. ƒá Most litigation under the Alien Tort Claims Act has failed. The story of the Drummond Company, sued by widows of murdered union leaders in Colombia, is told to illustrate a specific case. A jury found the company not guilty of violating human rights laws. ƒá International codes of conduct are voluntary, aspirational statements applying to MNCs that set forth standards for foreign operations. They are proliferating. ƒá In 1977 the Rev. Leon Sullivan, an American minister, created a code of conduct requiring multinational corporations in South Africa to do business in a nondiscriminatory way. This pioneering effort inspired later codes. ƒá Codes come from many sources. ƒá Corporate codes set forth aspirations and principles of action for operations in emerging economies. They are usually adopted to protect brand images in response to the criticisms of progressive activists. ƒá Corporate codes of large MNCs sometimes contain snowball clauses requiring a corporation¡¦s contractors and suppliers to comply with the company¡¦s conduct code. ƒá Most corporations reject outside monitoring of how their codes are implemented. Critics believe that most corporate codes are shallow efforts. Part 2: Chapter Objectives, Summarizing Outlines, And Case Notes ƒá Case examples of Wal-Mart and Mattel are used to illustrate the efforts that two prominent MNCs made to enforce their international labor codes. ƒá Industry codes are created to level the playing field for all firms in an industry and to avoid the disorder of multiple codes. They are loosely enforced and often lack credibility with activists. ƒá Other codes come from a range of entities, including nongovernmental organizations, multistakeholder initiatives, governments, and business groups. Multiple examples are given. ƒá The most conspicuous effort to promote MNC social responsibility is the United Nations Global Compact. ƒá The Global Compact requires corporations to implement a set of 10 principles based on established and emerging global norms. More than 3,000 corporations had volunteered to join by 2008. ƒá It is supported by six United Nations agencies and administered by an office in the Secretariat. ƒá Member corporations agree to report their progress on a UN Web site as they implement the 10 principles. A sampling of their reports is given. Critics believe that the Global Compact principles are vague and too loosely enforced
What is fiscal power?
Power
How did monopolies and trusts influence the government?
The monopolies and trusts caused corruption in the government by supporting pro-business representatives in the Senate and House of Representatives. Also, because these vast corporations had so much power in the economy America, they threatened the government into behaving to their desire by reminding it that they could destroy the economy very easily. So basically, the government was a puppet to the seemingly more powerful business woners like John Rockefeller and J. P. Morgan.
What is the Cost of 1 MW generation of power in thermal power plant?
The cost of 1 MW power generation is Rs. 5.0 crores in thermal power plant.
What events illustrates an example of concurrent power in which state and federal governments worked together?
chartering banks and corporations
Modernization theorists see large corporations as?
Modernization theorists feel that multinational corporations help to raise and improve living standards in poor nations by offering them tax revenues, new jobs, and advanced technology that combined accelerate economic growth (Firebaugh & Sandu, 1998)Large corporations unleash their productive power of capitalism in order to speed development in poor nations. (Berger, 1986)
What has the author George Modelski written?
George Modelski has written: 'Multinational corporations and world order' -- subject(s): Addresses, essays, lectures, International business enterprises 'The international relations of internal war' 'World Cities' 'Multinational Corporations (No Series Description Provided)' 'Atomic energy in the Communist bloc' -- subject(s): Economic aspects of Nuclear energy, Nuclear energy 'Two lectures on world politics' -- subject(s): Naval History, Politics and government, Sea-power, World politics
What situation best illustrates the healing power of positive expectations?
placebo effect
Why are multinational corporations criticized and how do multinational corporations counter the criticisms?
These companies often have considerable power and influence, and as a result are often criticised for their actions. One of the most famous of such cases was the problem faced by Nestlé in selling its baby milk in Africa. Critics pointed out that Nestlé was pushing the product on people when it was likely to cause harm to babies. According to a study in the British Medical Journal in 2003, the company was ignoring a code of conduct on marketing the productto countries in Africa. In addition, events like the Bhopal chemical explosion in 1984 have attracted much criticism. The incident took place in the Indian city of Bhopal and resulted in the death of more than 3,000 people, according to official figures. The plant belonged to the American chemical multinational Union Carbide.
Corporations are granted the power to issue bonds through?
state laws
What are corporate liberties?
Liberty is defined as the power to do or choose what you want to. Corporate liberties are the power that corporations have to do as they please.
Why are corporations covered under the national fair work act of Australia?
The power to legislate corporations is held by the Commonwealth (and corporations as it applies to Industrial relations per the High Courts ruling) and hence the act covers corporations in their role as employers, which is defined in the act.
What event in the tempest best illustrates a loss of power?
Ferdinand stacking wood for Prospero (Apex)
Are multinational corporations devils in disguise?
The short answer is yes! Anyone or any entity that is not held accountable will always abuse power. Always has always been my experience in my life time. We Americans are guaranteed a form of government with true checks and balances, but the people we have trusted to operate those checks and balances have been traders to their people. When everything is for sale in every state capital and Washington then is seems like a natural consequence that bribes will enable an abuse of power unless there are real citizens who have some moral fiber to operate the checks and balances that are absolutely required for honest government to control antisocial corporations. Remember, power corrupts and absolute power corrupts absolutely!!!
What is one impact of the language used by Prospero in this excerpt from The Tempest?
It illustrates Prospero's power over Ariel.
Which action illustrates the presidents power as commander in chief?
The order by the President to racially integrate the Armed Forces.
