4.Analyse the importance of Multinational companies in the process of Globalisation.
Answers
Answer:
1. Globalization is a process of rapid interdependence and interconnectedness amongst the countries of the world. The Multinational Corporations (MNCs) have played a major role in stimulating and spreading the process of globalization.
2. MNCs usually set up production units across the globe in places where the market is nearby, there is availability of skilled and unskilled labour at low costs and other factors essential to the growth of production.
3. The setting up of production in various countries leads to the development of products globally. Sometimes, the MNCs might also set up production with the local companies of a country as a joint responsibility, thus bringing in latest technology and foreign investment.
4. The MNCs also link and control the production of goods. Large MNCs in developed countries often place orders for production with small producers all around the world which are then sold by the MNCs under their brand name.
5. The power of control and influence of such corporations has contributed to the interlinking of such widely dispersed locations across the globe. This process, in turn, has contributed to the growth of global linkage of countries and the important role played by the MNCs in such a scenario.
Explanation:
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Answer:
1. Globalization is a process of rapid interdependence and interconnectedness amongst the countries of the world. The Multinational Corporations (MNCs) have played a major role in stimulating and spreading the process of globalization.
2. MNCs usually set up production units across the globe in places where the market is nearby, there is availability of skilled and unskilled labour at low costs and other factors essential to the growth of production.
3. The setting up of production in various countries leads to the development of products globally. Sometimes, the MNCs might also set up production with the local companies of a country as a joint responsibility, thus bringing in latest technology and foreign investment.
4. The MNCs also link and control the production of goods. Large MNCs in developed countries often place orders for production with small producers all around the world which are then sold by the MNCs under their brand name.
5. The power of control and influence of such corporations has contributed to the interlinking of such widely dispersed locations across the globe. This process, in turn, has contributed to the growth of global linkage of countries and the important role played by the MNCs in such a scenario.
Abstract:
Multinational corporations (MNCs) are known to largely drive the process of economic globalization. This paper, therefore, seeks to examine the principal role played by MNCs in expanding the various networks of economic globalization. The paper restricts itself to the three main ways by which the MNCs fuel the process of globalization. These are: International transfer of knowledge and technology, foreign direct investment (FDI) and production abroad, as well as foreign trade. The paper argues that MNCs mainly drive economic globalization, which might then result in the expansion of other forms of globalization, such as socio-cultural and political globalization.
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