Unit 3
UNIT 3
Multinational Corporation (MNC) also called transnational corporation, any corporation that is registered and operates in more than one country at a time. Generally the corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in other countries.
Activity 1: Blogging
Directions: Make a blog about the ways you think to lessen, if not eliminate the negative consequences of multinational corporations.
The Multinational Corporations (MNCs)
is a huge international corporation that used to produce goods and services to provide the global market. It is called multinational corporations as it is incorporated in a certain country however it functions and operates from a different part of the globe. The very nature of a Multinational Corporations is to establish branches in every country that the rawmaterials, labor cost and workplace are way cheaper than in its mother countries where it is based. Multinational Corporations generally participate and involve in a business within two or more countries.
Moreover, a multinational corporation is an organization that has assets or facilities in multiple countries. While they typically have a main office in their home country, these organizations may have offices, factories and other locations spread out across the globe.
The first advantage of multinational corporations is that there are less production costs because of the production in developing countries. Outsourcing is used by setting up manufacturing plants in countries that are the most cost-efficient. It is also important to note that multinational corporations take advantage of economies of scale by growing their brand through strategic management. The corporations can take advantage of undervalued services in other countries, as well as use inexpensive supply chains and advanced technologies
The first disadvantage of multinational corporations is their environmental impact. Multinational corporations are able to produce goods using the least expensive methods possible given their worldwide environment. As a result, their desire to work cheaply and efficiently is often at odds with sound environmental practices. Due to their economic significance in their host country, they often end up in a power position when lobbying for advantageous environmental regulations that favor profit over nature. If host countries are at an economic disadvantage, their desire for increased revenue often overrides the need to regulate a company’s environmental impacts.
Moreover, Multinational corporations can provide developing how to lessen the negative consequences of multinational corporations with looser environmental regulations new geographical areas, where market competition very.
Multinational corporations must follow what is the required by the law.
1. Competing Laws
MNCs have a responsibility to obey the laws of each host country, international laws and those of countries with a record of legal intervention in areas such as human rights. Fulfilling this responsibility can be tricky because laws in one country are often incompatible with those in another. That difficulty has increased as international non-governmental organizations (NGOs) have begun pursuing legal remedies in one country for alleged violations elsewhere.
2. Problem Awareness
Legal departments can conduct preventive research to identify which areas may cause trouble, promote corporate awareness of those problems and suggest solutions before legal issues arise and the courts intervene.
3. No exceptions or excuses for violations of existing environmental and pollution regulations.
4. Public disclosure of complete corporate tax returns, to allow citizens to be informed on their profit ratiios, tax rates, deductions, and other tactics.
5. Loss of all related patent rights if a corporation violates trade embargos, or sells weapons/technology to sanctioned regimes.
Indeed, Multinational corporations provide us all with a series of advantages which are challenging to ignore. However, there's lot of negative consequences that cannot be eliminated.
Therefore, everyone should be responsible enough to fulfill and do the ways in order to turn the negative consequences of multinational corporations to positive if it cannot be eliminated.
SUMMITED BY: CHRISTINE I. YABO
CLASS SCHEDULE: GE-CW (T-TH) 1:00-2:30 pm
SUMMITED TO: PROF MARICEL ADRIATICO
