h2g2 The Hitchhiker's Guide to the Galaxy: Earth Edition

Multinational company (or corporation), no capital N

Worth discussing TNC's?
Use of equals ( = ) sign in text is stylistically a bit
production (line 8) need not have a capital


"They are able to invest in research involving high-tech equipment and modern, efficient production, yet (?? on a longer timescale the one should lead to the other...otherwise why do the R&D?) still trade at competitive prices."
...the real gains are in the ability to scale operations, replicating the successful formula in new markets/countries. MNCs also have better access to finance than local or national firms, e.g. GM has a better credit rating than Brazil.

Reasons for decline of UK manufacturing base:
WTO encouraging global trade by reducing export taxation.
Specialization on global scale, educated, skilled UK workers do the work that suits them.
It's not that fewer factories are needed, just that they do different things - computers not clothes.

ARE MNCs GOOD?
"As with everything" hmmm there must be an exception, "As with most things" perhaps, or just leave that out altogether.

Maybe you might want to list +ives vs. -ive rather than by section, since the dividing things become a bit arbitrary.

Environmental Impacts - degredation of environment, national and global through poor regulation/self interest of LEDC government.

"Women may be encouraged to work, taking them from the family home"
- ooooOoo, don't say that to a feminist! Women maybe liberated ...etc
Guaranteed - under SOCIAL IMPACTS is missing a "u".

Westernization, z not s. Maybe a comment on whether this is good/bad, problems with upsetting cultures that were previously in harmony with their environment.

ECONOMIC IMPACTS
Okay so say there are good guys and bad guys, good guys bring:
inward investment to develop infrastructure, skills & living conditions of worker, stability compared to subsistance agriculture.
Bad guys bring:
exploitative practices, harsh living conditions, volatile labour demands, etc..
Both will bring:
industry multiplier i.e. support activities for manufacturing activity like hauliers, material suppliers...

"Whatever happens, MNCs get much more out of having production lines in other countries, than the host countries themselves, even if both countries are MEDCs" well in that they are capitalists then there must be some percieved benefit, but this is a political, market-prescence type game so it's not clear cut.

"lack of need for commitment means that the MNC does not run a risk of losing money to the country" - plainly untrue, Western activists and pressure groups have led to exploitative operators like Nike, loosing lots of money due to their overseas operations. Also these sorts of countries are often politically unstable, hence the risks are huge.


The 12 Largest MNCs in 1996
How did you choose your "production countries"?
You don't really blend the table into the narrative...yeah sure it's interesting , so talk about it.

Mars Inc. therefore Fiat SpA no?

WHAT ATTRACTED FIAT TO BRAZIl - guaranteed, no "u" again

MNCs and the World
"world banks" should be "international/global banks" to avoid confusion with The World Bank.
"organised a rescue pack[age]"

"relocate to a less demanding environment"...okay maybe a less demanding economic environment, or perhaps "a less developed country", environment rates as one of the most overused words ever.

"Currently companies must only adhere to the standards of their host country, which, as said before, may be deliberately reduced in order to lure corporations." ... "as disscussed".
LEDCs are often have corruption at some level.

"companies can face major repercussions from trading standards" - domestic trading standards are codes of best practice written by domestic firms, MNCs operating abroad have no need to come even near those of their home countries. International standards are largely the result of consumer pressure groups, always voluntary, and generally not something western governments like to get involved with.

"They hired workers through an agency and were unaware that the workers were actually children working in dangerous environments and for very poor wages. Once the British public found out, Gap's sales fell drastically until they altered their production policies. They now adhere to trading standards and have no problems."
errr, unless you have a specific case in mind, replace "agency" with "contractor" - the Gap has instigated certain changes to its mission statement and put a lot of good spin on things, but one can be pretty sure that they are still supplied by firms who operate in ways that would disgust the UK shoppers.

NIC: Newly Developed Country, Newly Industrialized perhaps??
Global Economy: a single worldwide economy, replace "a" with "the", remove "single"

Ever read a book called No Logo (Naomi Klein, HarperCollins/Flamingo 2001)? You should.

Hi Zophiel,

Can you copy these comments over to this thread please? F48874?thread=538187

That way all the other Peerers looking at this entry, will be able to see your comments

You'll also see that a few of your points have been raised already


Six Fb