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Multinational corporation (MNC)

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Introduction

Introduction. Multinational corporation (MNC) is 'a company which has operations in more than one nation. Such companies usually have a centralized head office where they coordinate global management' (Word IQ). In order to fit to the scale of the report, we are going to narrow a broad verb 'rule' to the notion of 'structural power' - 'a power to shape and determine the structures in global IPE' within which the other actors operate (Strange, 1998:24-27). There are four sources of this power: In the given report we are going to assess how powerful MNCs in terms of 'shaping' world according to their aims; and thus to give positive or negative answer to the question asked in the title. The report will consist of three main parts i.e. issues, background and response; the desk research method would be applied. Background: How could have corporations managed to replaced the notions of Democratic Capitalism and free market by 'oligopolistic neo-liberalism', where the strong gets all the benefits, while the weak struggles to survive (Gill, 2003:123)? ...read more.

Middle

Furthermore, they get more structural power on the arms market through the documents, such as the U.S. Excess Defense Articles Program (Bertsch G. K. & Jones), which literally authorizes the US President to sell 'excess defense articles on grant basis' to any developing country, that later use them in wars on our planet. This means that corporations receive influence over security of our planet. Thirdly, MNCs decide on production. When Enron, the Houston-based multinational engineering giant, has decided to raise its profits by means of building $2.8 billion gas-fired power plant a hundred miles south of Bombay in India, it was obvious for the local people and government that the project was extremely expensive, inefficiently located and ecologically threatening; people did not wish to get electricity for this cost. However, in 1996 the Indian government officially approved Enron's request to build the plant (Mayur, 1996). This means that neither local demand, no government or common sense, but MNCs determine 'what, when, how and by whom shall be produced' (Strange, 1988:29) Furthermore, despite K. ...read more.

Conclusion

The local communities' opposition to the corporate power and personal life-style choices also appear to be ineffective. The remonstrances take form of boycotts in front of McDonalds and Nike in such annual events as 'Buy Nothing Day' on the 24th of November. This day about 60% of the U.S. population is buying nothing, which is expected to be a protest to 'the culture of consumerism' (Furedi, 2003:3). However N. Klein (2000:421-425) sees it to be ineffective, because as soon as, for example, Nike is blamed in exploitation of labour on the factories, Reebok gets Human Rights Award as fighter against child labour for the cleverly done marketing actions, despite it uses the very same factories as Nike. Generally, if such cases cause the removal of the current leaders of the corporations, the both of them will continue to exist, which means that MNCs rule this world. Conclusion. If we summarize the above written information according to the Stranger's notion of power, we get the following picture: MNCs have greater degree of control over all four sources of structural power, than governments or any other actor, thus the answer to the question asked in the topic is positive: multinational corporations do rule the world, 1 ...read more.

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