MULTINATIONALS Multinationals are extremely large corporations with operations

MULTINATIONALS Multinationals are extremely large corporations with operations and subsidiaries in several countries They link the world’s economies together in a global, integrated, economy Employment, low cost production, raw material extraction & refinement, & marketing of goods Multinational budgets and earnings are often larger than many national budgets More money = more power ? ! Microsoft Wal-Mart Toyota Multinationals vs Nation-states

Large transnationals can dictate policies, set economic target, & may alter political agendas of their host nation-states For good or bad, transnationals are responsible for influencing global economic trends, knowledge, and cultural Multinationals often outsource much of their production to developing countries: Labour is Cheaper More influence on Gov’t Access to raw materials Access to markets Less environmental controls

Multinational/Transnational Corporations PROS CONS Integrated global economy Dictated policies Employment Power loss in host nations Resource ownership Low cost production dispute Raw material usage Pollution Markets Worker exploitation Standard of living Uniform consumer goods Education Control of pricing (OPEC) Housing Low cost labour Health Child labour Transportation Conflict (military, political) Knowledge transfer Globalization of products Investment Loss of culture Quality of life Population growth