Multinational companies are posing a threat to democracy in the modern era, Explain this statement.
Answers
Multinational companies are posing a threat to democracy in the modern era:
Multinational companies which contribute a huge amount to our country and contribute a lot to our GDP also pose a threat to our democracy in many ways – The election in our country is conducted in a very large scale and every political party needs a lot of money to conduct the elections.
All the money comes from the large multinational corps known as election funding, these can create a lot of problems as the political parties when come to power they make policies benefiting the MNC’s and not the people who have voted for them.
Answer:
Firms are seen as entities trying to maximize profits by managing resources efficiently. This benign definition might not hold for big companies, whose revenues rival that of governments, argues Luigi Zingales, professor of finance at the Chicago Booth School of Business. Big firms can unleash a vicious circle where money is used to gain political power and political power is used to make more money by subverting regulations or “rules of the game". Even intra-industry competition might not be enough to prevent such practices. The growing financial muscle of big firms, the decline of anti-business ideology in politics, rising corporate censorship in media etc. have made this problem more acute in recent times, according to the author.
Explanation:
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