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Multinational Corporations

Submitted by sompon on February 26, 2008

Multinational corporations are believed to be one of the most important mechanisms in the process of the globalisation. Even though some believe that their role will eventually benefit the entire world, in reality, they are more likely to threaten the world. Because of fact is that those multinationals are operated by businesspeople, in other words, merchants, whose only desire is to seek profits, rather than to ease the world poverty. Their massive sizes, along with their financial power, allow them to be able to pressure the governments with less power, who unwillingly have to conform the demands. Consequently, this result in the exploitation of human rights, environments and sovereignties. This research’s purpose is to demonstrate various actions of multinationals in pressuring the host governments, mostly focus on the human rights abuses, as well as the political lobbying. Moreover, a number of evidence has been given to be more understandable.










Multinational corporations (MNCs) refer to international companies which have direct investments abroad in multiple countries (Wild et al. 2007), such as Mcdonald’s, Coca-Cola and Microsoft. As a manifestation of globalisation, MNCs have played a significant part as a mechanism globalizing the world; they have heightened the rate of international activities among countries, as well as massively stimulated the world economy. According to Jonathan Michie’s book “The Handbook of Globalisation” (2003), MNCs produced approximately a quarter of the world GDP in 1999. Apart from stimulating the economy directly, they have provided indirect factors which have contributed the economic stimulation, such as increasing the employment rate, wages and technological development. The sizes of MNCs, however, are enormously huge. As it was presented in a quantitive data of the Global 500 cited by Wild et al. (2007), some multinationals’ revenue per...

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