3 3 6 Can MNCs be controlled Current

3. 3. 6 Can MNCs be controlled? ?

Current affairs…OECD predicts an EU recession… • The OECD said the eurozone would shrink in the fourth quarter by 1%, and by 0. 4% in the first quarter of 2012. • For the UK, the OECD's predictions are a 0. 03% contraction this quarter, and a further 0. 15% next. • The Organisation for Economic Cooperation and Development represents wealthy countries such as those within the eurozone, the US and Japan. • http: //www. oecd. org/document/47/0, 3746, en_21 571361_44315115_49095919_1_1, 00. html

Surge in MNCs…. how and why? • • • The spread of globalisation Breaking down of trade barriers Emergence of new markets Liberalisation of existing ones Advances in IT • These have all contributed towards this.

Benefits that MNCs bring to host countries

Drawbacks that MNCs bring to host countries

Control over MNCs comes from a number of factors:

Media – Primark and Panorama… • • • Hands up, who shops at Primark? ? How would you describe Primark? Why do you shop there? ? Value for money? Recently they’ve been discovered to use child labour…. would this put you off them? • http: //www. youtube. com/watch? v=p 0 AUr 0 Xp. Hc

Pressure groups • In a recent interview Ken learns of Barbie's scandalous deforestation habit. . . she's been wrapping herself in rainforest destruction and pushing endangered Sumatran tigers to the brink of extinction. . . • http: //www. youtube. com/watch? v=Txa. Xcr. Vpv. Q

The internet • http: //www. mcspotlight. org/index. shtml • Nestle and palm tree oil…. • http: //www. youtube. com/watch? v=QV 1 t. Mvn. Cr. A

Legal enforcement

Gov control…

Tasks • A-Z Worksheets: Controlling Multinationals • Video (Haves and have nots): • http: //www. youtube. com/watch? v=K 7 e. Rb 8 a. Lp. NI &feature=related • Good summary video of the exploitation of MNCs on host countries • Business Case Studies: Case 71 you must use this. Don’t be put off by its age – the Bhopal Tragedy remains very real in 2009 in India. The case still shocks – and raises many debating points.