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Pros and Cons of Multinational Companies

The document discusses the pros and cons of multinational corporations like Worldbeater, Inc. It lists pros such as bringing new technologies to poorer countries, playing an important role in global investment, and allowing for improved living standards worldwide. However, it also lists cons such as the potential exploitation of workers and resources without regard for local economic impacts. A separate section discusses the pros and cons of a globalized market, noting benefits like increased broadcasting capacity but also concerns about foreign influence destroying local cultures and homogenizing regional tastes.

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16K views3 pages

Pros and Cons of Multinational Companies

The document discusses the pros and cons of multinational corporations like Worldbeater, Inc. It lists pros such as bringing new technologies to poorer countries, playing an important role in global investment, and allowing for improved living standards worldwide. However, it also lists cons such as the potential exploitation of workers and resources without regard for local economic impacts. A separate section discusses the pros and cons of a globalized market, noting benefits like increased broadcasting capacity but also concerns about foreign influence destroying local cultures and homogenizing regional tastes.

Uploaded by

anbu_win87
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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[ UNIVERSITY OF MALAYA ]

WORLDBEATER,INC
AND
A WORLD VIEW
[TUTORIAL 4]
ANBUARASU SUKUMARAN
EEE070026

FACULTY OF ECONOMICS / INTERNATIONAL ECONOMIC ISSUE / 2008 / EXEE2108


WORLDBEATER, INC

PRO’S CON’S

 Bringing advanced technology to  Exploit workers and natural resources


poorer countries and low-cost with no regard for the economic well-
products to wealthier ones being of any country or community

 Plays important role in global  High wage workers lose their jobs
investment

 Play a key role in spread abroad the  Make it harder for government to
technology around the globe raise revenue, protect the
environment, and promote worker
safety (a fall in social protections)
 Produce cheapest sources of labour

 Give impacts on local traditional


 It’s also forces government to be economy
more careful before imposing costly

 Brings cultural homogenization


 Mergers and acquisitions of locally
multinational companies help other
companies to achieve economies of
scale in marketing and distribution  Exert power in a exploitative way
(allows well managed companies to (manipulate)
take over poorly managed companies)

 Allow entire world to improve their


standard of living and provide access
of quality product to entire world
regardless of place

 Providing new economic opportunity


for local economies

 Have a wider market. Huge market


has been created domestically and
internationally
A MARKET VIEW

PRO’S CON’S

 Huge increase in the capacity of  Many people resent what they see
Broadcasting. as foreign
influence on national politics

 Language and culture helped


create market  Some worry that this foreign
for American exports invasion will
destroy local cultures

 Falling cost of distribution, as  Others fear of homogenization of


digitization distinctive
has cut annual operating cost national and regional taste

 European broadcasters in particular


have
become huge markets for imported
Television programming. As a
result, this
continents runs a large and
growing account
deficit

 Global competition threatens the


survival of
the high cost programming that
many state
owned broadcasters in Europe
produce

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