• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Are transnational corporations the main beneficiaries of globalisation?

Extracts from this document...


Are transnational corporations the main beneficiaries of globalisation? "Two hundred giant corporations, most of them larger than many national economies, now control well over a quarter of the world's economic activity." Anderson & John Cavanagh (2000). Transnational corporations (TNC's) are wielding more power and influence than ever before, they have got so large that some have more financial clout, and employ more people than entire nations. This essay will expose how one of the most well-known Western TNC's (Coca-Cola), has resided in the less developed country (LDC) (India) causing severe drought, then how they were subsequently band from India through legal action. Then discuss if TNC's really are the main beneficiaries of globalisation through the use of case studies and the media. Obviously, there are other beneficiaries of globalisation that have done extremely well: these be entrepreneurs, newly industrialised countries (NIC's) in the East, and in some cases the consumer. However, this essay's primary focus is Coca Cola and how they operate with regard to their enormous profits; social responsibility and whether or not this continued exploitation can be sustained. ...read more.


the factory's . . . [Coca Cola's] licence to operate. It did so despite losing almost half of its annual income - some 700,000 rupees (about �9,000) - from the decision. Coca-Cola's lawyers appealed to the next level of government, which suspended the revocation and allowed the factory to continue operating [temporally]. Vallely & Clarke (Coke Adds Life?, 2003) Coca Cola of course denied all these allegations and said that the water shortage was due to a decline in rain fall. However, a meteorologist suggested that the amount of rain had actually increased. Whichever angle you look at this, Coca Cola has acted immorally: if they 'believed' that the amount of rain fallen had dropped, why did they take it all for themselves? Moreover, if the meteorologists report was correct then Coca Cola must have taken a substantial amount of water from the site. Touching on the social aspect of this, the water supply was depleted until the water that was left contained such a high degree of salt; it was almost unfit for human sanitation and consumption, let alone irrigation. ...read more.


to account. Also, the drafting of international legislation to prevent TNC's relocating so easily leaving hundreds without work. With these improvements in place the case may be that globalisation will still be making winners and losers. The case may also be that TNC's will still be the main beneficiaries of globalisation, but we may be able make the worlds largest firms and the consumer more ethical and moral. Raising awareness amongst consumers about the social issues and exploitation that is going on in LDC's in the East, and to raise the issues of previous third-world exploitation to TNC's looking to locate in weaker societies. All these aspects need to be addressed to the consumer, TNC's and the governments of the countries that are being exploited. Furthermore, the decisions that are binding on the local communities in LDC's must also be coming not just from the TNC's, but from the government and the local people themselves. Once these issues have been addressed and are being implemented on a world-basis the current exploitation may at last come to and end. Thus, ultimately closing the gap between who is and who are not benefiting from globalisation in today's capitalist free market society. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Where does the World Trade Organisation fit in the overall scheme of international public ...

    actions to restrict imports - all too often the protectionist's weapon of choice. Small firms and new entrants from developing countries are especially vulnerable; indeed, the majority of AD actions are aimed at developing country exports. Since the 1990s, developing countries have increasingly resorted to their own AD actions, especially against other developing countries.

  2. Free essay

    Multinational Corporations in context

    as well as the increasing popularity of the bank's image. This can be accounted from the dominant manufacturers and wholesalers in China who are under great demand from many countries in addition to MNCs, due to cheaper costs of production.

  1. Globalisation of GAP

    When making the decision the company must take into consideration the opportunity costs of the expansion and not neglect the domestic market. Entering into new markets involves a great deal of risk there are many problems associated with selling in an unknown markets.

  2. A Study of Globalisation - A study of multinationals and their effect on our ...

    (Held, et al 1999) In relation to Latin America (the major area of discussion of this paper) globalisation can be defined as a practice or system that has affected several of the continents most persistent problems. Such problems would be the diverse extent of economic exploitation and social disparity that

  1. globalisationGlobalisation has been taking place for hundreds of years, but it has speeded up ...

    For example, UK businesses can have a call centre in India answering calls from UK customers. Some people believe that globalisation is helping to create wealth in developing countries, while others think otherwise, though I will talk about this later.

  2. To what extent has globalisation created a 'borderless world'?

    After 1945, as trade barriers came down, and trade revived - the second wave of globalisation. This lasted until 1980. Since then, there has been unprecedented global economic integration. Globalisation has happened before, but not like this. What had been many separate national economies started to integrate; the world's economies globalised.

  1. Samuel Greg chose this site because

    The amount of money increased by growth of international trade. As well as this, In 1790 Greg started a lease under the Earl of Stamford concerning land in the village of Styal. The lease was very inexpensive; it cost 50 shillings and then 2.85 shillings a year to rent his land.

  2. Write a written report on Globalisation

    In sum, globalization puts pressure on low-skilled workers. Source: International Business for A2 Why has Globalisation occurred? There are several reasons as to why globalisation has occurred. Generally, there were steady changes that occurred in the world over the past 100 years.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work