The Increasing Significance of Multinational Company

1122 Words Feb 3rd, 2018 5 Pages
It has triggered a strong interest among the scholars, media, and society. The surrounding controversy around MNCs has triggered the need and necessity for the analysis due to the fact, that it is described by some scholars and economists as the principal instrument for maximizing world welfare, and by others as the imperialistic agents (United Nations Publication 1973, p.1).

Non-state actors are the international organizations that possess the diplomatic power and corporate with the states in the global scene (Kegley and Wittkopf 2004). The question is whether MNCs are such important non-state actors and in which ways they exert power over the states. First of all, one needs to comprehend the definition of a MNC. A MNC is a business organization whose activities are located in more than two countries. This means that MNC consists of a country where the business is incorporated, and of the branches, or subsidiaries in foreign countries. MNCs can obviously vary in the extent of their multinational activities as regards to the number of countries in which they operate. A large MNC can operate in hundreds of countries. The economic reality demonstrates the ability of the company located in one country to control the operations in foreign countries (Chandler and Mazlish 2005). According to Department of Economic and Social Affairs of…