Global Expansion of MNCs: Impact on the Global Economy Explored

This essay critically examines the assertion that the global expansion of multinational corporations (MNCs) benefits the global economy, arguing that such expansion often leads to the exploitation of developing nations. It begins by defining global expansion in the context of international trade and the establishment of production units in various countries. The essay highlights how MNCs exploit developing countries through lower production costs, cheap labor, and tax avoidance, facilitated by globalization. It references the historical context of globalization's initiation and discusses how US brands face global competition, eroding their market dominance. Furthermore, the essay points out the environmental pollution and regulatory non-compliance issues associated with MNC operations in less developed countries, ultimately concluding that the negative impacts on developing nations outweigh the purported benefits to the global economy. This essay uses a variety of academic sources to support its claims.

Does the global expansion of
multinational corporations
benefit the global economy

Table of Content
 Global expansion of Multinational Corporations
 What is global expansion of businesses?
 Why is global business exploiting the developing countries?
 When have the expansion of multinational organisations exploited the
developing countries?
 Where have the expansion of multinational organisations led to
exploitation of the less developed countries?
 How has the expansion of multinational organisations exploited the
developing countries?

Global expansion of Multinational Corporations
 Hello. We will be sharing our views in against the motion of the topic
“Does the global expansion of multinational corporations benefit the
global economy”. I believe that the the global expansion of
multinational corporations tend to have a negative impact upon the
developing nations. The global expansion can at times lead to
exploitation of the lesser developed countries across the globe.
Talking specifically in context global expansion of the multinational
organisations, Globalization has resulted in the inter border trade
among the countries where the businesses are expanding themselves
in various other countries through the form of trade and it involves
exchange of goods and services (Cooke, F. L. & Chen, C. C. (2019)).

What is global expansion of businesses?
 The multinational organisations have been expanding their business
and production unit across various nationalities through various ways.
 The huge multinational corporations tend to set up their production
units while merging with the organisations of the local regions or the
indigenous organisations.
 It have been notice that in various aspects, the multinational
organisations tend to buy the local organisations and then through
the acquisition they tend to initiate and expand their businesses
through the domestic production units.

Why is global business exploiting the developing
countries?
 It has been observed through various researches that the
multinational corporations have an access towards the lower
production costs.
 The multinational organisation tend to set up their production unites
in other countries which are especially the less developed nations.
 The reason behind the expansion of multinational organisations
towards the developing nations is that they hire cheap labour which
may lead to exploitation of the human welfare and it tends to benefit
the organisations as they incur lesser production costs.

When have the expansion of multinational
organisations exploited the developing countries?
 It has been discussed before, that the expansion of multinational
organisations have been facilitated by the concept of globalisation.
 Globalisation is basically a concept where in the countries were
allowed to deal with other countries across the globe through trade
practices.
 It has been observed through various studies that globalisation was
further initiated in 1942 where the voyages of Columbus towards the
discovery of new world.

Where have the expansion of multinational organisations led
to exploitation of the less developed countries?
 The brands of United states have faced a global competition. United
states of America is considered as the cradle for the brands of
consumer goods.
 There are various brands of United States such as Apple, Google,
Microsoft, etc. that have grown up to conquer the various other
societies across the globe.
 The brands of United States have faced erosion in aspect of
domination in the global markets.

How has the expansion of multinational
organisations exploited the developing countries?
 The multinational organisations tend to pollute the environment of
the developing countries and they further tend to fail in compliance
with the regulation of the government.
 The multinational organisations tend to have a scope regarding the
tax avoidance which leaves a negative impact upon the organisations
of the developing countries as their tax revenues are affected.

References
 Cooke, F. L. & Chen, C. C. (2019). Human resource management and industrial
relations in multinational corporations in and from China: Challenges and new
insights. Human Resource Management, 58(5), 455-471.
 Foss, N. J., & Pedersen, T. (2019). Microfoundations in international management
research: The case of knowledge sharing in multinational corporations. Journal of
International Business Studies, 50(9), 1594-1621.
 Kusek, P., & Silva, A. A. L. (2018). What Investors want: Perceptions and
experiences of multinational corporations in developing countries. World Bank
Policy Research Working Paper, (8386).
 Li, T., & Belal, A. (2018, June). Authoritarian state, global expansion and corporate
social responsibility reporting: The narrative of a Chinese state-owned enterprise.
In Accounting Forum (Vol. 42, No. 2, pp. 199-217). No longer published by Elsevier.
 Orts, E. W. (2019). The legitimacy of multinational corporations. In Progressive
corporate law (pp. 247-279). Routledge.

Thank you