Essay About Mncs

Vertically integrated MNCs produce intermediate goods in a subsidiary that are later used for the production of final goods in other countries.For example, the General Motors plant in Tonawanda, New York, produces engines to supply GM auto plants worldwide.If you need a custom essay or research paper on this topic please use our writing services.Essay offers reliable custom essay writing services that can help you to receive high grades and impress your professors with the quality of each essay or research paper you hand in.In addition, the EU (European Union), OECD (Organization for Economic Co-operation and Development), UN (United Nations), WTO (World Trade Organization), and UNCTAD (United Nations Conference on Trade and Development) elaborated codes of conduct for MNCs.Increasing evidence indicates that some MNCs engage in illegal activities, such as using child labor, discriminating against women, and suppressing trade unions.However, MNCs often come under attack in the host country for several reasons, one of which is loss of national sovereignty.MNCs may dominate the economies of the host countries and consequently influence political decisions.

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One example of political influence is in the case of Chile.Another example is the case of United Brands (now Chiquita, producing mainly bananas), which in 1974 paid a

One example of political influence is in the case of Chile.

Another example is the case of United Brands (now Chiquita, producing mainly bananas), which in 1974 paid a $1.5 million bribe to the president of Honduras in return for an export tax reduction.

When the bribe was discovered, the president was removed from office.

In addition, the technology transfer usually has very limited linkages with the other sectors of the host country and consequently “the spillover effects” are very limited.

A third criticism is MNC exploitation of domestic resources.

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One example of political influence is in the case of Chile.Another example is the case of United Brands (now Chiquita, producing mainly bananas), which in 1974 paid a $1.5 million bribe to the president of Honduras in return for an export tax reduction.When the bribe was discovered, the president was removed from office.In addition, the technology transfer usually has very limited linkages with the other sectors of the host country and consequently “the spillover effects” are very limited.A third criticism is MNC exploitation of domestic resources.Furthermore, a good deal of two-way foreign direct investment occurs among industrial countries: U. firms expand their European subsidiaries and at the same time European firms expand their U. The three largest MNCs worldwide in 2006 were Exxon Mobil, with headquarters in the United States and revenue of $339.9 billion; Wal-Mart, with headquarters in the United States and revenue of $315.6 billion; and Royal Dutch Shell, with headquarters in the Netherlands and revenue of $306.7 billion.MNCs can create several problems in the home country.MNCs use minerals, raw materials, unskilled labor, and entrepreneurial talent acquired from the host country for production.They obtain these resources at a very low price, which results in high profits for the multinational firm, profits usually not reinvested in the host country or shared with the country yielding its natural resources and human capital.Conglomerated MNCs produce different or even totally unrelated goods in various countries. The phenomenon of MNCs is not new, instead tracing back to the late 18th century when firms like the British, Dutch, and French East Indian companies sought raw materials overseas.The modern-day counterparts of these raw material-seeking firms are the multinational oil and mining companies, as recent advances in transportation and communications technology increased the feasibility of global production, enabling MNCs to grow rapidly over the past 60 years.

.5 million bribe to the president of Honduras in return for an export tax reduction.When the bribe was discovered, the president was removed from office.In addition, the technology transfer usually has very limited linkages with the other sectors of the host country and consequently “the spillover effects” are very limited.A third criticism is MNC exploitation of domestic resources.Furthermore, a good deal of two-way foreign direct investment occurs among industrial countries: U. firms expand their European subsidiaries and at the same time European firms expand their U. The three largest MNCs worldwide in 2006 were Exxon Mobil, with headquarters in the United States and revenue of 9.9 billion; Wal-Mart, with headquarters in the United States and revenue of 5.6 billion; and Royal Dutch Shell, with headquarters in the Netherlands and revenue of 6.7 billion.MNCs can create several problems in the home country.MNCs use minerals, raw materials, unskilled labor, and entrepreneurial talent acquired from the host country for production.They obtain these resources at a very low price, which results in high profits for the multinational firm, profits usually not reinvested in the host country or shared with the country yielding its natural resources and human capital.Conglomerated MNCs produce different or even totally unrelated goods in various countries. The phenomenon of MNCs is not new, instead tracing back to the late 18th century when firms like the British, Dutch, and French East Indian companies sought raw materials overseas.The modern-day counterparts of these raw material-seeking firms are the multinational oil and mining companies, as recent advances in transportation and communications technology increased the feasibility of global production, enabling MNCs to grow rapidly over the past 60 years.

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