ISO 9001:2015

THE ROLE OF MULTINATIONAL CORPORATIONS IN GLOBAL ECONOMIC INTEGRATION

The participation of multinational corporations (MNCs) in the process of integrating economies throughout the world is of the utmost importance. As a result of this integration, economies all around the world are becoming more interdependent on one another and connected among themselves. In a variety of different ways, multinational firms make this a very real possibility. To begin, they make it easier for money to be transferred across international borders, which in turn helps to stimulate the economies of the countries that are hosting the riches. Second, multinational corporations (MNCs) increase their productivity by using cutting-edge management techniques and technology, which in turn results in an increase in the number of employment opportunities. Thirdly, they foster a healthy competition in the community markets, which has the potential to increase both production and the generation of new ideas. There are a number of issues and disputes that surround the role that multinational firms play in the process of integrating economies throughout the world. Concerns have been raised by a great number of individuals over the future of the environment and the rights of workers due to the possibility that multinational companies (MNCs) may exploit the various methods that countries take to environmental regulation and labor expenses. Furthermore, when economic power is concentrated in the hands of a small number of significant enterprises, it poses a danger to both the sovereignty of the country and the stability of the local economy. In spite of these challenges, multinational firms continue to be a significant driving force behind the expansion of worldwide commerce. Through the use of economies of scale and global networks, they are able to successfully navigate complex global markets and seize possibilities for expansion. In order to ensure that local people and the environment are able to reap the benefits of global economic integration, it is very necessary to focus on addressing the ethical and regulatory problems that are associated with the actions of multinational corporations (MNCs). In order to facilitate the free flow of money, the exchange of technical know-how, and the promotion of healthy competition in the market, multinational firms are an essential component of the process of globalization of economies. Nevertheless, in order to minimize any negative effects, their business practices need to be closely monitored and regulated. Policymakers and stakeholders in the global economy continue to face the essential problem of striking a balance between the benefits of the engagement of multinational corporations and the requirement for responsible corporate conduct

 


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