Discuss the Extent to Which Multinational Corporations Are to Blame for the Problems Associated with Globalisation

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“Discuss the extent to which multinational corporations are to blame for the problems associated with globalisation” (30 marks) Globalisation is the closer integration of countries due to a reduction of costs of transportation, communication and goods, services, money, capital, people and knowledge flowing more evenly. Globalisation has resulted in the formation and growth of large multinational corporations. Multinational corporations are companies that produce goods or services in two or more countries. One problem with globalisation is that when multinational corporations outsource a factory to an LEDC they are sometimes accused of exploiting workers. An example of this is Nike in Vietnam, in 2005 they were accused of running sweatshops and massively underpaying their workers, they were also accused of using children to also work in the factories. Many human rights pressure groups believe that this is inhumane and that workers should be given higher pay and better working conditions, they also believe it is wrong for children to be working in such an adult environment. However, you could argue that even though workers may get underpaid and this is at the fault of multinational corporations like Nike, without multinational corporations that outsource factories to LEDC these people may not have a job in the first place and therefore have no money. Also some working conditions may be poor, but many multinational corporations invest large amounts of money into the local area, this improves the living conditions for the workers, due to this many corporations may then not have the money to improve the working conditions. You could argue that if local governments invested more money in local living conditions, multinational corporations then wouldn’t have to and would therefore have the money to improve working

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