multinational corporations
- 1. 1 Presented by : Ahmad Raza Bajwa Section : A 12U00231
- 2. • 17th and 18th centuries • Operating in several countries . • The Dutch East India Company. • Post 2nd world war and emergence of USA’s power Description 2
- 4. • Create employment opportunities in the host countries.. • Helps removal of monopoly (domination) • improve the quality of domestic made products. • Promotes exports and reduce imports • Goods are available at cheaper price due to economies of scale. • Job and career opportunities at home and abroad. • Transfer of technology, capital and entrepreneurship. • Greater availability of products for local consumers. Favourable Impact of MNCs 4
- 5. 1. The host county may lose its economic sovereignty 2. Feeling that labour is being exploited by the MNC/ Outsourcing 3. Lost of cultural moorings 4. The problem of Dumping – Chinese products are priced low in Indian market. Bad business ethics Underestimate local culture Harmful to producers and consumers Harmful effect of MNCs 5
- 7. Case study Multinational Corporations in the Third World: Predators or Allies in Economic Development? by James C. W. Ahiakpor
- 8. Findings of Case study • MNC’s were misrepresented • Helping 3rd world countries • Improved standard of livings • Misleading facts regarding low wages etc. • Natives likeness towards imported goods • Singapore, Taiwan are enjoying • Corporate Social Responsibility
- 9. MNC’s in world • The World Investment Report 2009, published by the UNCTAD (United Nations Conference on Trade and Development), states there is a total of 889,416 multinational companies (MNCs) around the world: 82,053 parent corporations and 807,363 affiliates. • In 2008, the 100 largest MNCs’™ sales combined amounted to nearly $8.5 trillion
- 10. Sweat Shops Facts • A "sweatshop" is defined by the US Department of Labor as a factory that violates 2 or more labor laws. • Sweatshops often have poor working conditions, unfair wages, unreasonable hours, child labor, and a lack of benefits for workers. Take a stand and protest: Ask your school to make its apparel under fair conditions. • In developing countries, an estimated 250 million children ages 5 to 14 are forced to work. • America has stronger labor laws than most undeveloped countries, but it is not free of sweatshops. Many slip under the radar of the US Department of Labor. • Products that commonly come from sweatshops are shoes, clothing, rugs, coffee, chocolate, toys,
- 11. Sweat Shops
- 12. Nike- “Just don’t do it”..
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- 15. In context to Pakistan.. • Independence • No capital goods • Sends message as a good business destination