Factors That Empower And Constrain Mncs Essay

1165 WordsOct 10, 20155 Pages
The mounting standing of multinational corporations (MNCs) in today’s global economy has held some interest from international organizations, national government agencies and local citizens (Yang & Huang 2011: 3). MNCs have risen to prominence through mergers, procurement and setting up new enterprises, and they have operated businesses throughout the world (Yang & Huang 2011: 3). They mobilize resources, develop vertical and horizontal production networks and penetrate all kinds of markets across borders (Yang & Huang 2011: 3). These acts have changed the operations of a national economy as well as the relationships among them (Yang & Huang 2011: 3). In this essay, I will seek to evaluate the factors that empower and constrain MNCs, and thus forge and communicate the understanding of whether their structural power has been on the incline or on the decline. To begin with, the research took the direction of understanding of what a multinational corporation is defined as and its scope and advantage. Peter Dicken’s (2008) chapter on Transnational Corporations: The Primary ‘Movers and Shapers’ of the Global Economy was insightful in understanding that “a transnational corporation is a firm that has the power to coordinate and control operations in more than one country, even if it does not own them” (Dicken 2008: 106). In Dicken’s view, the transnational corporation has grown into the perception of being the main shaper of the present-day global economy and a chief danger to the

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