Why mncs are bad

Multinational corporations are unique because of their central structure that treats every market as part of the overall whole.

That approach is different than a transnational company that looks at each community as an individualized enterprise. When a large company generates enough profits to start buying out their competition, then the mergers and acquisitions process can begin to develop monopolistic opportunities. Monopolies are a naturally occurring effect in a capitalist economy, so government intervention to prevent such an action creates a mixed economy instead.

ABInBev produce and distribute over different types of bear around the world. Simmons Pet Food Inc. Google owns a significant majority of search engine traffic. The reason why monopolies are a disadvantage of MNCs is that a single provider creates the potential for price manipulation. If you can only purchase an item from this one company, then they are free to set whatever price they want for it because there is no competition.

Offshoring happens more often with multinational corporations. Because labor is cheaper overseas, offshoring happens quite frequently when an MNC begins to expand its operations.

Although there are new job opportunities globally when this occurs, the ethics of exploiting the labor costs of their markets can be a significant disadvantage.

The goal of these operations should be to provide a livable wage for their workers. It limits the number of choices that are available to consumers at the local level. ABInBev might offer different beer choices to the consumer, but you are still sending your money to that one company when you purchase an item.

The Coca-Cola Company has more than 1, different brands which are available in almost every country around the world. PepsiCo sells snacks and beverages under several brand names as well. Because these larger companies can out-price the local competition with their economies of scale, it can become almost impossible for small businesses to stay competitive.

MNCs tend to operate as a local business even though they are not one. Walmart decided that one of the ways that it could start to expand its brand was to create a marketplace that was similar to local neighborhood stores. That idea became the foundation of the Walmart Neighborhood Market.

There are hidden costs to consider with multinational corporations. A company like this one can cost a local community several billion dollars in supplemental assistance funds because of the low wages they provide. Environmental concerns can develop with the presence of MNCs. Another issue with capitalist economies is the fact that profit occurs at any cost. But MNCs do not need to operate according to this objective.

At the very least, maximizing profits is not the only objective that they can strive for. This role includes adding the goal of benefiting the public good to their company mission.

Through this method, MNCs have a chance to reverse social injustices by redirecting their profits into improving the social, environmental and economic processes in developing countries. Blog - Latest News. Individual Wellbeing Multinational corporations in developing countries employ millions of people , but the quality of these jobs is often low. Solutions The Human Rights Watch and other humanitarian nonprofits have called for supply chain transparency in MNCs, particularly clothing and footwear industries, to publicize and improve working conditions in sweatshops across the globe.

An MNC is always a dream beginning for many career aspirants, due to the sheer investments they make, to ensure world class facilities, ambiance, infrastructure and security. And the most important of all, it does give job aspirants, an opportunity to travel overseas, either on training or project, should their job profile require that.

You have finally succeeded in getting you dream job, after a 4 year long toil, in finishing your graduation. You will no doubt be itching to get hold of that first pay cheque of yours, which you so richly deserve. You are one amongst those millions in the world, who now possess the identity, of being working with an MNC!

You should no doubt be proud about your achievement, but have you really thought about the fact, that you could have considered alternatives too! That though is not the case amongst many people as there is a shift in thinking and as such, an MNC may not turn out to be the best choice for many. But definitely not without, indirectly asking you to compromise on your lifestyle.

Working with an MNC, there is no business. Work load might warrant you to spend 12 hours at work and only few hours with your family at home. This is sure to deflate you to a large extent, though a hefty paycheque at the end of every month may excite you completely. Are you enjoying what you are doing, irrespective of the fact that, you have to do it, for various practical reasons?

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