Essay – Multinational Corporation: Sabotage or a Saviour
Multinational Corporation: Sabotage or a Saviour Essay: The advent of multinational companies can be traced back to the late 16th century with the establishment of European companies mainly the Dutch and the English ones. The most prominent multinational company is the East India Company which was founded in 1602 and mainly entrusted with the aim to exploit resources from the colonies. After the creation of the East India Company came the Dutch East India company which emerged as the largest company for nearly 200 years.
Discussion
Multinational Corporations are those that control the production in more than one nation. Multinational companies serve to be saviours for one group of people and saboteurs for another group of people. Those who get employed regards multinational corporations as saviours and those who are not the beneficiaries, especially the low-paid labourers are considering the multinational corporations as sabotage.MNCs set up their factories in locations where they can get access to cheap skilled labour, favourable government policies, cheap resources and a stable economic environment.
India has nearly 41 multinational corporations and a few of these are Deloitte, Accenture, IBM, Apple, Microsoft, Coca Cola and TCS. These multinational companies sell their finished goods and services and are employing a large number of educated youths. Also, these companies set up their production in different nations where they can get access to huge capital and financial banking. This mainly happens in countries that are developed such as America and Japan. However, the rising debate is whether multinational corporations serve as sabotage or saviour. With the increase of the MNCs in India the number of educated non employed youth in the country has almost slowed down. However, Indian indigenous companies face difficulties and strive hard to survive in the face of the tough competition posed by the MNCs. On the contrary, the MNCs face challenges due to cultural differences, recruitment, cost-centric customer and varied demographics. Gaining insights into the local preference of the customers is exacerbatingly difficult for the MNCS to cope with. In order to overcome such problems in India, it is required to replace the local leadership with ex-pat leaders.
A major advantage of MNCs is the increase in job opportunities, quality, choices, competition, technology and a lot more. Except for the beneficiaries, the small producers are not at all happy with the MNCs. This is because they have to bear the pressure of the competition posed by the MNCs. For instance, if the company wants to lessen the price of the product to sell it internationally it cannot compromise the price of the resources. In this process, it is the cost of labour that it has to reduce. The labours are made to work overtime and the wages that are paid to them are much less than they deserve. There are many MNCs that do not follow the labour rules and thus they recruit small producers without granting them any extra perks. Thus, maximum households are deprived of the basic standard of living.
Conclusion
To conclude, it can be said that in a country like India, the government has to widely use trade barriers which monitor the products that shall enter the country. Thus it is difficult to interpret whether multinational companies act as sabotage or a saviour because it is the educated youths who are getting employment. Contrary to this, the labourers who get hired for cheap wages by multinational corporations are in no way considering them to be saviours.
FAQs
Q1. Name any two multinational corporations of India.
Ans: Apple and Microsoft are the two multinational corporations in India.
Q2. Name the first multinational company in India.
Ans: East India Company is the first multinational company in India.
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